Whirlpool WHR is one of the world's largest manufacturers of home appliances, with its portfolio spanning laundry appliances, refrigerators, freezers, cooking appliances, and other household products.
The stock is a current Zacks Rank #5 (Strong Sell), with EPS expectations remaining on a bearish trajectory across the board. Weak appliance demand, continued margin pressures, and a sizable reduction in full-year earnings guidance have all contributed to the bearish picture.
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Whirlpool Keeps Disappointing
Weak quarterly results from WHR have been impossible to ignore, with sales falling 8.8% YoY to $3.68 billion in the latest period, alongside a sharp drop in earnings from $2.09 per share in the same period last year to a loss of -$0.21 per share. The results reflected its fourth consecutive double-miss relative to our consensus expectations, with the average EPS surprise over the period coming in at -101.5%.
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A challenging environment for appliance demand has driven the weak performance, with continued softness in the housing market an impacting force. Fewer home purchases mean less opportunities for appliance sales, a trend that has continued to weigh on Whirlpool's results for years now.
The company also lowered its full-year earnings outlook significantly in the above-mentioned release, now expecting a loss of -$1.30 per share in its current fiscal year compared to its prior guidance of $2.50 to $3.00 per share. The reduced outlook fully reflects the challenges WHR continues to face, with a softer-than-expected recovery clearly impacting its earnings power.
Bottom Line
Negative earnings estimate revisions paint a challenging picture for the company's shares in the near term.
Whirlpool WHR is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
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Whirlpool Corporation (WHR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
