by Tracey RyniecMay 29, 2012 | Comments : 0 Recommended this article: (0)
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The company manufactures home appliances, such as refrigerators, dishwashers, cooking and countertop appliances. The company owns many iconic brands such as Maytag, KitchenAid, Jenn-Air, Amana, Bauknecht and Consul.
Whirlpool has 66 manufacturing and technology research centers worldwide.
Whirlpool Beat In the First Quarter
On Apr 26, Whirlpool reported its first quarter results and surprised on the Zacks Consensus Estimate by 26%. Earnings per share were $1.41 compared to the consensus of $1.12. This is well below the prior years earnings, however, of $2.17 per share.
Sales dropped 1% to $4.3 billion from $4.4 billion in the year ago period. The decline was due to weaker appliance demand, unfavorable currency and lower monetization of BEFIEX tax credits.
North American sales fell 1% to $2.2 billion as unit shipments decreased about 7% while Latin America saw a 3% increase to $1.3 billion. Europe/Middle East/Africa and Asia both fell 8% and 3%, respectively.
Whirlpool saw strong profitability improvement in the North America and Latin America regions but that was partially offset by weak economic conditions in Europe.
Outlook for 2012
Latin America is expected to carry a lot of the load at Whirlpool in 2012. Full year 2012 appliance industry shipments in the region is expected to increase to the high end of Whirlpool's previous guidance range of 2% to 5%.
Earnings for the full year are expected to be between $6.50 and $7.00 per share.
Zacks Consensus Estimate Rises
The analysts are more cautious than Whirlpool about 2012.
While 5 estimates have moved higher in the last 30 days, the 2012 Zacks Consensus Estimate jumped to just $6.42 from $6.05. That is still below the company's guidance range.
Earnings are also expected to contract by 14% in 2012 as Whirlpool made $7.49 last year.
Still Has Value
Shares rallied to start 2012 but have weakened on worries over the global economy.
The sell off has made Whirlpool even more of a value.
In addition to a P/E under 10, a sure sign of value, it also has a price-to-book ratio of just 1.0. A P/B ratio under 3.0 usually indicates value.
Whirlpool's P/B is even under the industry, which averages a P/B ratio of 1.2.
As an added bonus, shareholders are also rewarded by an attractive dividend, currently yielding 3.4%.
Whirlpool may be seeing the global weakness, but it still has attractive value credentials.
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