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Will Whirlpool's (WHR) Dismal Earnings Trend Linger in Q2?

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Whirlpool Corp. (WHR - Free Report) , the largest home-appliances manufacturer in the world, is slated to report second-quarter 2015 results on Jul 22, 2015. In the previous quarter, the company had delivered a negative earnings surprise of 14.1%. Let’s see how things are shaping up for this announcement.

Factors Influencing this Quarter

Whirlpool has delivered lower-than-expected bottom-line results in three out of the past four quarters, with an average negative surprise of 3.9%. The company’s first-quarter 2015 results were adversely impacted by ongoing currency headwinds and weak demand in Brazil, which more than offset the benefits from cost-cutting initiatives. Going forward, the company expects these headwinds to linger. This also led management to lower its earnings outlook for 2015. Consequently, we remain apprehensive about the company’s upcoming results.

Earnings Whispers

Our proven model does not conclusively show that Whirlpool is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. This is not the case here, as you will see below.

Zacks ESP: Whirlpool currently has an Earnings ESP of -3.75%. This is because the Most Accurate estimate stands at $2.57, which is below the Zacks Consensus Estimate of $2.67.

Zacks Rank: Whirlpool carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks that Warrant a Look

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 this quarter:

American Eagle Outfitters Inc. (AEO - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #2 (Buy).

Whole Foods Market Inc. has an Earnings ESP of +2.22% and a Zacks Rank #2.

Dollar Tree Inc. (DLTR - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #3 (Hold).

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