Whirlpool reports Q2 sequential margin improvement, reaffirms operational outlook
Whirlpool Corporation reported second-quarter net sales of $3.5 billion, a 6.8% year-over-year decline, while delivering sequential ongoing EBIT margin improvement of 50 basis points to 1.8%. The company executed a promotional price increase of more than 10% relative to first-quarter prices, effective in late April, which contributed to a 240-basis-point sequential margin expansion in its North America major domestic appliance segment. Full-year revenue guidance was reaffirmed at approximately $15 billion, representing 1.5% growth on a like-for-like basis when excluding the previous year's India business results. Whirlpool also completed the divestiture of its minority stake in Beko Europe B.V. for $128 million in total cash consideration, resulting in roughly $84 million of net cash proceeds and a reported gain of $139 million. The company updated its full-year ongoing earnings per share guidance to a range of $2.50 to $3.00, reflecting an increased interest expense outlook of $350 million following recent secured bond issuances.
Whirlpool to report earnings Monday with revenue expected to decline 5.7%
Whirlpool is set to report its quarterly results after market hours on Monday. The market expects revenue to decline 5.7% year on year, in line with the 5.4% decrease recorded in the same quarter last year. Last quarter, the company missed analysts' revenue expectations, reporting $3.27 billion, down 9.6% year on year, with full-year EPS guidance and EPS estimates both significantly missed. Analysts have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course. Whirlpool shares are down 1.6% over the last month, heading into earnings with an average analyst price target of $52.55 compared to the current share price of $37.33.
Whirlpool Stock Downgraded to Strong Sell as Earnings Estimates Plunge
Whirlpool has been downgraded to a Zacks Rank #5 (Strong Sell) after analysts slashed earnings estimates by 26.6% for this year and 25.5% for next year. The company reported second-quarter revenue of $3.77 billion, down 5.4% year-over-year and missing expectations, while adjusted EPS fell to $1.34 from $2.39 a year ago. Net income tumbled 70% to $65 million, and sales are projected to decline 7.2% in 2025 and another 3.6% in 2026 amid higher costs, intensifying Asian import competition, and soft consumer demand. The stock is down 28% year-to-date and trades at 13.6 times forward earnings, above the industry average of 11.2 times and its own 10-year median of 9.4 times, leaving room for further downside. Investors are advised to avoid the stock until earnings stabilize and margin recovery becomes visible.
WHR · Capital · Negative Earnings estimates slashed by ~26%, revenue miss, net income down 70%.
600983.CG · Demand · Negative Soft consumer demand and Asian import competition mentioned as headwinds for Whirlpool overall, likely impacting China operations.
United States