walmart flipkart
Walmart is buying Indian online retailer Flipkart
00:55 - Source: CNNMoney
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% 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 US stores could be a bit softer than the 3% it estimated earlier this year. Walmart is now predicting sales to grow between 2.5% to 3% 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.