Wal-Mart whiffs on earnings

Wal-Mart reported first-quarter earnings on Tuesday morning, and it was a miss on the top and bottom line.

The world's largest retailer reported first quarter diluted earnings per share of $1.03, missing expectations for $1.05, according to Bloomberg. It noted that the foreign currency impact erased 3 cents per share from its earnings.

The company posted revenues of $114.88 billion, below the consensus forecast for $116.23 billion. Excluding the FX impact of $3.3 billion, revenues rose 2.7% from the previous year.

"We had a solid first quarter. We took some important strategic steps to strengthen the foundation of our business for the future. We need to continue to get better at consistently running great stores, clubs and e-commerce everywhere .. and we are," CEO Doug McMillon wrote in the release.

Comparable store sales rose 1.1%, versus prior guidance of 1% - 2%, and the estimates for 1.5%.

The stock fell by as much as 2% in pre-market trading.

The company said it expects second quarter earnings per share of between $1.06 and $1.18.

In February, the retailer announced a raise in the hourly pay of 500,000 of its associates.

And last week, Wal-Mart confirmed that it is planning a subscription service for fast shipping to compete with Amazon Prime. Amazon's offering costs $99 per year, and Wal-Mart's will be cheaper, at $50 annually, although it won't include free music and video streaming at first.