Wal-Mart Stores Inc. (NYSE: WMT) reported second quarter 2016 results before markets opened Tuesday morning. The retailing giant posted diluted earnings per share (EPS) of $1.08 on total revenues of $120.23 billion, which includes membership fees in Sam’s Club. In the same period a year ago, Walmart reported EPS of $1.26 on revenues of $120.13 billion. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $1.12 and $119.72 billion in revenue.

U.S. second-quarter same-store sales, both including and excluding fuel sales, rose 1.5% at the company’s supercenter and discount stores. Same-store sales in the company’s Sam’s Club stores were up 1.3% excluding fuel and down 2.3% including fuel sales. Same-store sales at the Neighborhood Market stores rose approximately 7.3% in the quarter, and global net sales were flat for the quarter.

For the third quarter of its 2016 fiscal year, Walmart forecast EPS in a range of $0.93 to $1.05 compared with actual EPS of $1.15 in the third quarter last year and the consensus estimate for $1.08. The company lowered its full-year EPS guidance from a prior range of $4.70 to $5.05 to a new range of $4.40 to $4.70. The consensus estimate for full-year EPS is currently $4.77. Walmart’s full-year EPS estimate includes impacts of $0.24 per share related to higher wages; $0.06 to $0.09 per share related to incremental investment in global e-commerce; and a currency exchange impact of $0.15 per share.

Doug McMillon, Walmart’s CEO, said:

We’re pleased that the investments we’ve made are helping to improve our business. Even if it’s not as fast as we would like, the fundamentals of serving our customers are consistently improving, and it’s reflected in our comps and revenue growth. In this case, our desired changes require investments, which are pressuring earnings this year. We’re confident that our strategic plan will create robust sustainable growth for shareholder returns over time.

Walmart paid $1.6 billion in dividends during the quarter and repurchased approximately 14 million shares for $1 billion.

The good news for Walmart is that this is the fourth consecutive quarter the stores have posted year-over-year growth in same-store sales. The less-good news is that it is costing Walmart more to accomplish that growth. The less-good news is what investors are focused on this morning as the bid the stock down to new 52-week lows in the pre-market session.

Walmart’s shares traded down more than 3% in pre-market trading Tuesday morning, at $69.61, below the 52-week range of $70.36 to $90.97. Thomson Reuters had a consensus analyst price target of around $79.95 before today’s results were announced.

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