Whirlpool's Earnings Outlook Casts Shadow Over Stock Performance

A report indicates that Whirlpool's upcoming earnings projection reveals a significant drop in EPS and revenue. Despite a recent uptick in share prices, the overall outlook remains concerning ahead of their October financial release, prompting investor caution.

Date: 21-09-2024

AI Rating: 3

Whirlpool (WHR) is preparing for its upcoming earnings release on October 23, 2024, and the numbers indicate a troubling trend for the company. The projected EPS of $3.04 signals a steep 44.22% decline compared to the same quarter last year, suggesting potential challenges in profitability.

Furthermore, the expected revenue of $4.07 billion reflects a 17.29% decrease from the prior-year quarter. Both these metrics being down raises significant concerns regarding the company's ability to grow and generate profits in a competitive market.

For the full year, analysts are projecting an EPS of $11.31 with an accompanying revenue forecast of $16.78 billion, both indicating substantial year-over-year declines of -30.01% and -13.73%, respectively. Such declines can lead to a negative perception among investors, impacting stock price performance as companies failing to meet or exceed earnings expectations typically experience selling pressure.

In addition to declining earnings, the Zacks Rank system currently rates Whirlpool as a #5 (Strong Sell), which correlates with a challenging market sentiment. It reflects a broader trend of bearish analysts' opinions, further pressuring stock performance. The forward P/E ratio of 9.14, while appearing discounted compared to the industry average of 13.55, does not offer reassurance for prospective investors when combined with the negative earnings projections.

The Household Appliances industry ranks poorly at 188 out of over 250 industries, which indicates Whirlpool is not alone in facing difficulties but also stands out within a struggling sector. With its current standing in the bottom 26% of industries, investor interest may diminish further, resulting in additional downward pressure on stock prices.

Stocks: WHR