Geoffrey Smith 

Investing.com — Walmart stock (NYSE:) fell premarket following a large margin of disappointment in the quarterly earnings forecast for the U.S. largest retailer. The company also warned that inflation would eat into the profits it earns over the remainder of the year. 

Walmart reported adjusted earnings per share of $1.30 for the three-month period ending April. This is well below the consensus estimate of $1.48. It was even more profitable than it expected, with revenue at $141.6 million instead of $139.1billion. 

This pattern was expected to continue through the year, according to company. They raised their guidance for annual sales and cut their profit forecast. The company now anticipates that full-year earnings will fall by about 1%. It previously forecasted an increase of approximately 5%. However, it expects currency-adjusted net revenues to rise by approximately 4%, compared with 3% in the previous forecast. 

Walmart stock dropped 6.2% in the morning ET (1110 GMT), and was on track to open at its lowest point for two months.