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Here's How Whirlpool (WHR) is Positioned Ahead of Q2 Earnings
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Whirlpool Corporation (WHR - Free Report) is slated to release second-quarter 2021 results on Jul 21, after the closing bell. The household appliances company is likely to have witnessed revenue and earnings growth in the to-be-reported quarter. The Zacks Consensus Estimate for its second-quarter earnings stands at $5.97, indicating 177.7% growth from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days.
For second-quarter revenues, the consensus mark is pegged at $4.96 billion, suggesting 22.7% growth from the prior-year quarter’s reported figure.
Notably, the company delivered an earnings surprise of 74.2% in the last reported quarter. Moreover, the bottom line beat estimates by 33.4%, on average, over the trailing four quarters.
Whirlpool has been benefiting from increased volumes, solid execution of go-to-market endeavors, strong industry demand and cost-based pricing efforts. Robust demand for kitchen and home appliances as consumers continue to invest in home upgrades has been a key driver. The enhancement of e-commerce and direct-to-consumer capabilities is expected to have aided sales in the to-be-reported quarter.
The company’s second-quarter performance is also expected to have benefited from heavy investment in innovative products and technology.
Gains from cost-saving endeavors, which include curtailing structural and discretionary costs, capturing raw material deflation opportunities, effectively managing working capital, and syncing supply chain and labor levels with demand, are likely to have aided margins in the second quarter. The company recently announced significant cost-based price increases of 5% to 12% in various countries across the globe.
However, raw-material inflation, particularly led by higher steel and resin costs, is likely to have weighed on margins in the second quarter. The company has been witnessing inflationary pressures in steel and resins for the past few quarters. Moreover, global semiconductors and resin shortages have amplified existing supply constraints, impacting product availability. The company’s investments in innovation and technology are also expected to hurt EBIT margins in the near term.
On the last reported quarter’s earnings call, management predicted that gains from sustained consumer demand and its cost-based pricing endeavors are likely to be considerably offset by the headwinds related to the global supply chain and input cost inflation in the quarters ahead.
What the Zacks Model Says
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 chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Whirlpool has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
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Here's How Whirlpool (WHR) is Positioned Ahead of Q2 Earnings
Whirlpool Corporation (WHR - Free Report) is slated to release second-quarter 2021 results on Jul 21, after the closing bell. The household appliances company is likely to have witnessed revenue and earnings growth in the to-be-reported quarter. The Zacks Consensus Estimate for its second-quarter earnings stands at $5.97, indicating 177.7% growth from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days.
For second-quarter revenues, the consensus mark is pegged at $4.96 billion, suggesting 22.7% growth from the prior-year quarter’s reported figure.
Notably, the company delivered an earnings surprise of 74.2% in the last reported quarter. Moreover, the bottom line beat estimates by 33.4%, on average, over the trailing four quarters.
Whirlpool Corporation Price and EPS Surprise
Whirlpool Corporation price-eps-surprise | Whirlpool Corporation Quote
Key Points to Note
Whirlpool has been benefiting from increased volumes, solid execution of go-to-market endeavors, strong industry demand and cost-based pricing efforts. Robust demand for kitchen and home appliances as consumers continue to invest in home upgrades has been a key driver. The enhancement of e-commerce and direct-to-consumer capabilities is expected to have aided sales in the to-be-reported quarter.
The company’s second-quarter performance is also expected to have benefited from heavy investment in innovative products and technology.
Gains from cost-saving endeavors, which include curtailing structural and discretionary costs, capturing raw material deflation opportunities, effectively managing working capital, and syncing supply chain and labor levels with demand, are likely to have aided margins in the second quarter. The company recently announced significant cost-based price increases of 5% to 12% in various countries across the globe.
However, raw-material inflation, particularly led by higher steel and resin costs, is likely to have weighed on margins in the second quarter. The company has been witnessing inflationary pressures in steel and resins for the past few quarters. Moreover, global semiconductors and resin shortages have amplified existing supply constraints, impacting product availability. The company’s investments in innovation and technology are also expected to hurt EBIT margins in the near term.
On the last reported quarter’s earnings call, management predicted that gains from sustained consumer demand and its cost-based pricing endeavors are likely to be considerably offset by the headwinds related to the global supply chain and input cost inflation in the quarters ahead.
What the Zacks Model Says
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 chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Whirlpool has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Gildan Activewear, Inc. (GIL - Free Report) has an Earnings ESP of +1.41% and it currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Crocs, Inc. (CROX - Free Report) presently has an Earnings ESP of +1.44% and a Zacks Rank #2.
Snap-On Incorporated (SNA - Free Report) has an Earnings ESP of +1.89% and it currently has a Zacks Rank #3.