Whirlpool Faces Earnings Drop Amid Market Lagging Performance

In the latest report, Whirlpool's EPS is projected to decline by 44.22% year-over-year, hinting at a challenging financial outlook. Revenue is also expected to drop, which could affect investor sentiment and future stock prices.

Date: 11-09-2024

AI Rating: 4

Whirlpool (WHR) has shown mixed performance recently. The stock closed at $97.19, with a slight increase of +0.08%, but underperformed compared to the S&P 500's daily gain of 0.45%. Over the past month, however, it has gained 5.35%, outperforming both the Consumer Discretionary sector and the S&P 500, which is a positive sign for investors.

Upcoming earnings reports are crucial as they can significantly influence stock prices. For Whirlpool, the projected Earnings Per Share (EPS) is $3.04, which represents a staggering 44.22% drop compared to the same quarter last year. This sharp decline suggests a loss of profitability and could lead to downward pressure on the stock price.

Moreover, the revenue estimate stands at $4.07 billion, indicating a 17.29% decrease from the prior-year quarter. Such significant revenue drops can impact investor confidence and are likely to influence stock performance adversely if not addressed effectively by the company.

For the complete fiscal year, the Zacks Consensus Estimates indicate a projected EPS of $11.31, which illustrates a decline of 30.01% from the previous year. Revenue projections of $16.78 billion reveal a 13.73% decrease compared to last year. These figures collectively suggest negative trends in financial performance, potentially leading to negative investor sentiment.

The Zacks Rank places Whirlpool at a #4 (Sell), which further emphasizes the likely challenges ahead. The stagnant Zacks Consensus EPS estimate in the last month indicates a lack of optimism from analysts, which could negatively affect stock movement.

On the valuation side, Whirlpool's Forward P/E ratio is at 8.59, compared to the industry average of 13.28, signifying that Whirlpool is undervalued relative to its peers. While this might provide a buying opportunity, the underlying fundamental issues reflected in the EPS and revenue forecasts pose risks.

Stocks: WHR