Whirlpool Corporation WHR is slated to release fourth-quarter 2024 results on Jan. 29, after the closing bell. The household appliance company’s bottom line is expected to have increased year over year.
For fourth-quarter revenues, the Zacks Consensus Estimate is pegged at $4.3 billion, indicating a 16% decrease from the prior-year quarter’s reported figure. The consensus estimate for quarterly earnings has moved up 0.9% in the past seven days to $4.39 per share. The consensus mark for earnings indicates a 14% increase from the year-ago quarter’s reported figure.
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For 2024, the Zacks Consensus Estimate for revenues is pegged at $16.8 billion, indicating a 13.9% decrease from the prior-year quarter’s figure. The consensus estimate for 2024 earnings has moved up 0.3% in the past seven days to $12.31 per share. The consensus mark for earnings indicates a 23.8% decrease from the year-ago quarter’s reported figure.
The company delivered an earnings surprise of 14.7% in the last reported quarter. The bottom line has surpassed estimates by 7.7%, on average, over the trailing four quarters.
Whirlpool Corporation Price and EPS Surprise
Whirlpool Corporation price-eps-surprise | Whirlpool Corporation Quote
Key Factors to Influence WHR’s Q4 Results
Whirlpool's quarterly performance is likely to have been impacted by a challenging macroeconomic environment in the United States. The company has been grappling with persistent global demand softness and an unfavorable price/mix for some time.
Although there has been a recent interest rate cut, the U.S. housing market has been facing high mortgage rates. This has led to a shift in demand toward low-margin replacement purchases, while high-margin discretionary demand remains weak due to sluggish home sales. These trends are expected to have pressured Whirlpool's revenues and earnings in the to-be-reported quarter.
On the last reported quarter’searnings call management provided a cautious outlook for 2024, citing challenges such as inflation affecting manufacturing and supply chains, weaker demand trends, and adverse price/mix. Whirlpool projected net sales of $16.9 billion for 2024, down from $19.5 billion in the prior year. It also anticipates an ongoing EBIT margin of 6%, whereas it reported 6.1% in 2023.
The company expects GAAP earnings per share (EPS) of $0.50 for 2024, reflecting an updated GAAP tax rate and a non-cash charge related to the Europe transaction. Whirlpool anticipates ongoing EPS of $12.00, which includes around $300 million in cost-saving measures. For comparison, WHR reported GAAP EPS of $8.72 and ongoing EPS of $16.16 in 2023.
However, Whirlpool appears well-positioned, supported by its cost-reduction and pricing strategies. The company has made notable progress in safeguarding margins and maintaining productivity, particularly amid inflationary pressures. Its organizational simplification, part of previously announced cost-cutting initiatives, has been completed. These efforts include reducing structural and discretionary costs, leveraging raw material deflation, managing working capital effectively, and aligning supply chain and labor levels with demand.
Looking ahead, Whirlpool is optimistic about further cost-saving opportunities, particularly through manufacturing and supply-chain efficiencies, driven by automation and optimized input costs returning to the pre-COVID levels. Despite challenging macroeconomic conditions, the company achieved $150 million in cost savings in the first half of 2024. It remains on track to deliver $300 million in total savings for the year.
In response to a highly promotional U.S. market environment in late 2023, Whirlpool has focused on expanding margins in North America. To adapt, it implemented a 5% weighted average increase in its promotional pricing program for MDA North America, effective April 25, 2024. Additionally, the company is well-positioned to benefit from a potential recovery in the U.S. housing market, signaling readiness to capitalize on improved conditions.
In MDA Latin America, management expects a sustained strong 2024 EBIT margin, driven by consistent growth and improved pricing/mix. Meanwhile, the SDA Global business is prepared for the holiday season with a robust EBIT margin. Despite industry challenges, management projects a 7.5% increase in net sales, supported by a pipeline of new products.
What the Zacks Model Unveils for WHR
Our proven model does not conclusively predict an earnings beat for Whirlpool this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
WHR currently has an Earnings ESP of +0.30% and a Zacks Rank #4 (Sell).
Valuation Picture of WHR Stock
From a valuation perspective, Whirlpool stock trades at a premium relative to the industry. WHR has a forward 12-month price-to-earnings ratio of 11.3X, above the Household Appliances industry’s average of 9.63X. However, the company’s stock trades below the historical benchmarks, with a five-year high of 13.41X.
The recent market movements show that WHR shares have gained 19.6% in the past three months compared with the industry's 15.5% growth.
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Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
V.F. Corporation VFC currently has an Earnings ESP of +4.30% and flaunts a Zacks Rank of 1. VFC is likely to register bottom and top-line declines when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.8 billion, indicating a 7.2% decline from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for VFC’s earnings is pegged at 34 cents per share, implying a 40.4% decline from the year-ago quarter’s actual. The consensus mark for earnings has moved up by a penny in the past 30 days.
Royal Caribbean Cruises RCL currently has an Earnings ESP of +0.15% and a Zacks Rank #2. RCL is likely to register top and bottom-line growth when it reports fourth-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.8 billion, indicating 13.2% growth from the figure reported in the year-ago quarter.
The consensus estimate for Royal Caribbean’s earnings is pegged at $1.50 per share, implying a 20% increase from the year-earlier quarter. The consensus mark for earnings has moved up by a penny in the past seven days.
Fox FOXA currently has an Earnings ESP of +5.86% and a Zacks Rank #2. FOXA is likely to register topand bottom-line growth when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.9 billion, suggesting 15.4% growth from the figure reported in the year-ago quarter.
The consensus estimate for FOXA’s earnings is pegged at 64 cents per share, implying an 88.2% growth from the year-earlier quarter. The consensus mark for earnings has been unchanged in the past 30 days.
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