Walmart trims profit outlook after Flipkart purchase

Company says purchase to cut earnings by $740M

CNN Money

(CNN Business) - Walmart warned investors Tuesday that its acquisition of Flipkart will hurt its quarterly profit.

Walmart agreed to pay $16 billion for a 77 percent stake in the company earlier this year. Flipkart is India's top online retailer and gives Walmart access to a market it has been trying to crack for years.

Walmart said the purchase will cut earnings by 25 cents a share, or about $740 million, in the current quarter.

The company also said sales at U.S. stores could be a bit softer than the 3 percent it estimated earlier this year. Walmart is now predicting sales to grow between 2.5 percent to 3 percent at stores open at least a year.

The guidance didn't seem to bother investors. Shares of Walmart (WMT) were stable in pre-market trading.

Copyright 2018 by CNN NewSource. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.