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Here's How Whirlpool (WHR) is Placed Just Ahead of Q2 Earnings
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Whirlpool Corporation (WHR - Free Report) is slated to release second-quarter 2022 results on Jul 25, after the closing bell. The household appliance company is expected to have witnessed revenue and earnings declines in the to-be-reported quarter.
For second-quarter revenues, the Zacks Consensus Estimate is pegged at $5.25 billion, suggesting a 1.5% decline from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for second-quarter earnings has moved down 7.1% in the past seven days to $5.23, indicating a 21.2% decline from the year-ago quarter’s reported figure.
The company delivered an earnings surprise of 8.4% in the last reported quarter. The bottom line beat estimates by 8.5%, on average, over the trailing four quarters.
Whirlpool has been under pressure due to the global supply-chain disruptions and rising raw material costs. The supply-chain disruptions have resulted in higher freight costs. Increased investments in marketing and technology, and continued currency devaluation in Latin America are anticipated to have acted as deterrents. These factors are likely to have marred the company’s margin performance in the to-be-reported quarter.
On its last reported quarter’s earnings call, management expected supply-chain inefficiencies, particularly in distribution and labor, to continue throughout 2022. It also anticipated the global cost inflation in steel and resins to remain a headwind. Inflationary pressures are likely to have significantly impacted the second-quarter 2022 performance.
Additionally, the company recently announced the sale of its Russia operations, which is likely to have resulted in a loss of $300-$400 million in the second quarter of 2022. WHR’s decision to scale down its operations in Russia has come after Russia’s invasion of Ukraine, which has resulted in limited production in the region. These additional losses are likely to have further marred the company’s second-quarter performance.
However, Whirlpool has been benefiting from its cost-based pricing actions to offset raw material inflation and strong consumer demand. The company has been on track with early and decisive actions to protect margins and productivity amid the ongoing supply-chain constraints and significant inflationary pressures.
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 -6.22%.
Stocks With Favorable Combination
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 season:
Caleres (CAL - Free Report) has an Earnings ESP of +0.25% and currently sports a Zacks Rank of 1. The company is likely to register increases in the top and bottom lines when it reports second-quarter fiscal 2022. The Zacks Consensus Estimate for CAL’s quarterly earnings has been unchanged for the past 30 days at $1.32 per share, suggesting 10.9% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Caleres’ quarterly revenues is pegged at $736 million, which suggests a rise of 9% from the figure reported in the prior-year quarter. CAL has delivered an earnings beat of 62.9%, on average, in the trailing four quarters.
Callaway Golf has an Earnings ESP of +2.69% and a Zacks Rank of 2 at present. The company is likely to register increases in the top and bottom lines when it reports second-quarter 2022. The Zacks Consensus Estimate for ELY’s quarterly earnings has been unchanged in the past 30 days at 42 cents per share, suggesting an increase of 16.7% from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Callaway Golf’s quarterly revenues is pegged at $1.1 billion, indicating a rise of 20.1% from the figure reported in the prior-year quarter. ELY has delivered an earnings beat of 955.5%, on average, in the trailing four quarters.
Skechers (SKX - Free Report) currently has an Earnings ESP of +1.82% and a Zacks Rank #3. SKX is anticipated to register top-line growth when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.78 billion, indicating an improvement of 7.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Skechers’ bottom line has been unchanged in the past 30 days at 55 cents per share. The consensus estimate suggests a decline of 37.5% from 88 cents reported in the year-ago quarter. SKX has delivered an earnings beat of 23.6%, on average, in the trailing four quarters.
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Here's How Whirlpool (WHR) is Placed Just Ahead of Q2 Earnings
Whirlpool Corporation (WHR - Free Report) is slated to release second-quarter 2022 results on Jul 25, after the closing bell. The household appliance company is expected to have witnessed revenue and earnings declines in the to-be-reported quarter.
For second-quarter revenues, the Zacks Consensus Estimate is pegged at $5.25 billion, suggesting a 1.5% decline from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for second-quarter earnings has moved down 7.1% in the past seven days to $5.23, indicating a 21.2% decline from the year-ago quarter’s reported figure.
The company delivered an earnings surprise of 8.4% in the last reported quarter. The bottom line beat estimates by 8.5%, 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 under pressure due to the global supply-chain disruptions and rising raw material costs. The supply-chain disruptions have resulted in higher freight costs. Increased investments in marketing and technology, and continued currency devaluation in Latin America are anticipated to have acted as deterrents. These factors are likely to have marred the company’s margin performance in the to-be-reported quarter.
On its last reported quarter’s earnings call, management expected supply-chain inefficiencies, particularly in distribution and labor, to continue throughout 2022. It also anticipated the global cost inflation in steel and resins to remain a headwind. Inflationary pressures are likely to have significantly impacted the second-quarter 2022 performance.
Additionally, the company recently announced the sale of its Russia operations, which is likely to have resulted in a loss of $300-$400 million in the second quarter of 2022. WHR’s decision to scale down its operations in Russia has come after Russia’s invasion of Ukraine, which has resulted in limited production in the region. These additional losses are likely to have further marred the company’s second-quarter performance.
However, Whirlpool has been benefiting from its cost-based pricing actions to offset raw material inflation and strong consumer demand. The company has been on track with early and decisive actions to protect margins and productivity amid the ongoing supply-chain constraints and significant inflationary pressures.
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 -6.22%.
Stocks With Favorable Combination
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 season:
Caleres (CAL - Free Report) has an Earnings ESP of +0.25% and currently sports a Zacks Rank of 1. The company is likely to register increases in the top and bottom lines when it reports second-quarter fiscal 2022. The Zacks Consensus Estimate for CAL’s quarterly earnings has been unchanged for the past 30 days at $1.32 per share, suggesting 10.9% growth from the year-ago quarter’s reported number.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Caleres’ quarterly revenues is pegged at $736 million, which suggests a rise of 9% from the figure reported in the prior-year quarter. CAL has delivered an earnings beat of 62.9%, on average, in the trailing four quarters.
Callaway Golf has an Earnings ESP of +2.69% and a Zacks Rank of 2 at present. The company is likely to register increases in the top and bottom lines when it reports second-quarter 2022. The Zacks Consensus Estimate for ELY’s quarterly earnings has been unchanged in the past 30 days at 42 cents per share, suggesting an increase of 16.7% from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Callaway Golf’s quarterly revenues is pegged at $1.1 billion, indicating a rise of 20.1% from the figure reported in the prior-year quarter. ELY has delivered an earnings beat of 955.5%, on average, in the trailing four quarters.
Skechers (SKX - Free Report) currently has an Earnings ESP of +1.82% and a Zacks Rank #3. SKX is anticipated to register top-line growth when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.78 billion, indicating an improvement of 7.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Skechers’ bottom line has been unchanged in the past 30 days at 55 cents per share. The consensus estimate suggests a decline of 37.5% from 88 cents reported in the year-ago quarter. SKX has delivered an earnings beat of 23.6%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.