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Whirlpool (WHR) Queues Up for Q3 Earnings: What's in Store?
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Whirlpool Corporation (WHR - Free Report) is slated to release third-quarter 2021 results on Oct 21, after the closing bell. The household appliance company is likely to have witnessed revenue growth in the to-be-reported quarter. For third-quarter revenues, the Zacks Consensus Estimate is pegged at $5.69 billion, suggesting 7.6% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for its third-quarter earnings stands at $6.16, indicating a 10.9% decline from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days.
The company delivered an earnings surprise of 12.7% in the last reported quarter. The bottom line beat estimates by 29.8%, on average, over the trailing four quarters.
Whirlpool has been benefiting from increased volumes, solid execution of go-to-market endeavors, strong customer demand and the execution of its cost-based pricing efforts. 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 third quarter.
Gains from net costs related to a carry-over impact of structural cost takeout actions, higher volumes and cost productivity initiatives have been aiding the company’s operating margins. On its last reported quarter’s earnings call, management predicted the positive margin momentum to continue throughout 2021, which indicates notable margin gains in the third quarter.
The enhancement of e-commerce and direct-to-consumer capabilities are also expected to have aided sales in the to-be-reported quarter. The company’s third-quarter performance is expected to have benefited from heavy investment in innovative products and technology.
However, raw-material inflation, particularly led by higher steel and resin costs, is likely to have weighed on the third-quarter performance. The company has been witnessing inflationary pressures in steel and resins for the past few quarters. On the last reported quarter’s earnings call, management predicted the global raw material cost inflation environment, particularly in steel and resins, to hurt its business by $1 billion in 2021. It also anticipated raw material cost inflations to peak in the third quarter of 2021.
The company’s investments in innovation and technology are expected to hurt EBIT margins in the third quarter. Headwinds related to the ongoing global supply chain are likely to have weighed on the third-quarter performance.
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. But that’s not the case here. 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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Whirlpool (WHR) Queues Up for Q3 Earnings: What's in Store?
Whirlpool Corporation (WHR - Free Report) is slated to release third-quarter 2021 results on Oct 21, after the closing bell. The household appliance company is likely to have witnessed revenue growth in the to-be-reported quarter. For third-quarter revenues, the Zacks Consensus Estimate is pegged at $5.69 billion, suggesting 7.6% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for its third-quarter earnings stands at $6.16, indicating a 10.9% decline from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days.
The company delivered an earnings surprise of 12.7% in the last reported quarter. The bottom line beat estimates by 29.8%, 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 customer demand and the execution of its cost-based pricing efforts. 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 third quarter.
Gains from net costs related to a carry-over impact of structural cost takeout actions, higher volumes and cost productivity initiatives have been aiding the company’s operating margins. On its last reported quarter’s earnings call, management predicted the positive margin momentum to continue throughout 2021, which indicates notable margin gains in the third quarter.
The enhancement of e-commerce and direct-to-consumer capabilities are also expected to have aided sales in the to-be-reported quarter. The company’s third-quarter performance is expected to have benefited from heavy investment in innovative products and technology.
However, raw-material inflation, particularly led by higher steel and resin costs, is likely to have weighed on the third-quarter performance. The company has been witnessing inflationary pressures in steel and resins for the past few quarters. On the last reported quarter’s earnings call, management predicted the global raw material cost inflation environment, particularly in steel and resins, to hurt its business by $1 billion in 2021. It also anticipated raw material cost inflations to peak in the third quarter of 2021.
The company’s investments in innovation and technology are expected to hurt EBIT margins in the third quarter. Headwinds related to the ongoing global supply chain are likely to have weighed on the third-quarter performance.
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. But that’s not the case here. 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:
Steven Madden, Ltd. (SHOO - Free Report) has an Earnings ESP of +4.55% and it currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boyd Gaming Corporation (BYD - Free Report) presently has an Earnings ESP of +2.17% and a Zacks Rank #2.
Central Garden & Pet Company (CENT - Free Report) currently has an Earnings ESP of +22.22% and a Zacks Rank #2.