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Why Is Whirlpool (WHR) Up 0.2% Since Last Earnings Report?

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It has been about a month since the last earnings report for Whirlpool (WHR - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Whirlpool due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Whirlpool Q1 Earnings and Sales Surpass Estimates

Whirlpool posted first-quarter 2023 results, wherein earnings and net sales beat the Zacks Consensus Estimate. However, both metrics declined year over year. Results were impacted by the global demand softness, and an unfavorable mix of product and price.

Insight Into Q1

The appliance maker reported first-quarter adjusted earnings of $2.66 per share, surpassing the Zacks Consensus Estimate of $2.14 and our estimate of $2.48. However, the bottom line declined 49.9% from the $5.31 reported in the year-ago quarter.

Net sales of $4,649 million surpassed the Zacks Consensus Estimate of $4,550 million and our estimate of $4,533 million. However, the top line dropped 5.5% from the year-ago quarter. Excluding the unfavorable impacts of foreign exchange, net sales amounted to $4,736 million, down 3.7% year over year. The downside is mainly due to unfavorable product price/mix & soft global demands.

The gross profit for first-quarter 2023 was $763 million, down 10.3% from $851 million reported in the year-ago quarter. Ongoing EBIT of $251 million declined 45.8% from $463 million in the year-ago quarter. The ongoing EBIT margin of 5.4% contracted 400 basis points (bps) year over year.

Regional Performances

Net sales for the North America segment decreased 1.6% year over year to $2,747 million. The segment’s EBIT plunged 39.6% year over year to $454 million, while the EBIT margin contracted 630 bps to 10% due to unfavorable price/mix partially offset by the addition of InSinkErator.

Net sales for the EMEA segment were down 18% year over year to $889 million. Organic sales in the region dipped 7.7%. The metric was hurt by drab demand in key countries. The segment’s EBIT was at $5 million against the year-ago quarter’s loss of $27 million. This increase was driven by positive price/mix and held for sale benefits partially offset by raw material inflation.

Net sales from Latin America dipped 0.4% year over year to $757 million, owing to softer demand in Brazil partially offset by sequential demand improvement in Mexico and cost-based pricing actions. The segment’s EBIT of $39 million declined 27.8% compared with the year-ago period’s $54 million. The EBIT margin contracted 190 bps to 5.2%, mainly affected by cost inflation and foreign currency.

Net sales in Asia fell 10.2% year over year to $256 million mainly due to muted consumer demand. Excluding the currency impacts, sales for the region were down 3.4%. The segment’s EBIT of $8 million reflected a 62.9% plunge from the $14 million reported in the year-ago quarter. The segment’s EBIT margin of 3.1% contracted 170 bps from the prior-year quarter due to negative price/mix and foreign currency partially offset by reduced cost inflation.

Other Financial Details

As of Mar 31, 2023, the company had cash and cash equivalents of $1,359 million, long-term debt of $7,382 million and a stockholders’ equity of $2,061 million, excluding non-controlling interests of $173 million.

As of Mar 31, 2023, Whirlpool used cash of $477 million from operating activities. It reported a free cash outflow of $573 million. WHR incurred a capital expenditure of $96 million in the same period.

The company returned $97 million in cash to shareholders as dividends. As of Mar 31, 2023, it has approximately $2.6 billion remaining as share repurchase authorization.


Whirlpool reaffirmed its expectations for 2023 net sales of $19.4 billion, down 1-2% from the prior year’s reported number. On a GAAP and ongoing basis, Whirlpool downgraded its earnings per share expectation to $13-$15 from the previous expectation of $16-$18. However, it reaffirmed ongoing earnings per diluted share of $16-$18. Management anticipates a tax rate of 19-21% on a GAAP basis and adjusted basis. For 2023, Whirlpool expects cash provided by operating activities of $1.4 billion and a free cash flow of $800 million.

That said, management is on track with its cost takeout actions and expects $800 to $900 million related to gains from the aforementioned measures and eased raw material inflation.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted 5.5% due to these changes.

VGM Scores

Currently, Whirlpool has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.


Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Whirlpool has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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