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Can Whirlpool (WHR) Reverse Dismal Earnings Trend in Q1?
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Whirlpool Corp. (WHR - Free Report) is slated to release first-quarter 2017 results on Apr 24. The big question facing investors is whether this leading home appliance maker will be able to deliver a positive earnings surprise in the quarter to be reported.
Last quarter, Whirlpool delivered a negative earnings surprise of 4.2%. In fact, the company has a record of reporting negative earnings surprises in recent quarters with lower-than-expected earnings reported in three of the last four quarters. Consequently, it has underperformed the Zacks Consensus Estimate by an average of 2.1% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
Though Whirlpool’s surprise history is not very impressive, it demonstrated strength in fourth-quarter 2016 with the top line and bottom line jumping year over year. The company has been riding on its innovation strategy that helps it tap additional sales and gain market share. Moreover, its solid integration and cost-productivity activities have been enhancing performance. These factors, along with a robust brands portfolio have been growth drivers for the stock.
Notably, the company’s estimates have been stable ahead of first-quarter 2017 results. The Zacks Consensus Estimate of $2.79 per share for the first quarter, reflect growth of nearly 6% from the prior-year quarter. Moreover, analysts polled by Zacks expect revenues of $4.77 billion for the first quarter, displaying nearly 3.4% growth from the year-ago quarter.
However, Whirlpool has underperformed the broader sector on a year-to-date basis. Shares of Whirlpool dipped 6.8%, while the Zacks categorized Consumer Discretionary sector gained 7.7%.
The company continues to grapple with currency woes, which are expected to linger and hurt results in 2017, though by a modest amount. Further, weak demand in some regions poses concerns.
So, let’s wait and see if Whirlpool can counter the hurdles and rise up to report an earnings beat in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that Whirlpool is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Whirlpool is currently at 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both are pegged at $2.79. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Whirlpool currently carries a Zacks Rank #3 (Hold). While the company’s current Zacks Rank increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
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:
Panera Bread Company , scheduled to release earnings on Apr 25, currently has an Earnings ESP of +2.21% and a Zacks Rank #2 (Buy).
Amazon.Com, Inc. (AMZN - Free Report) , expected to release earnings on Apr 27, currently has an Earnings ESP of +7.62% and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Can Whirlpool (WHR) Reverse Dismal Earnings Trend in Q1?
Whirlpool Corp. (WHR - Free Report) is slated to release first-quarter 2017 results on Apr 24. The big question facing investors is whether this leading home appliance maker will be able to deliver a positive earnings surprise in the quarter to be reported.
Last quarter, Whirlpool delivered a negative earnings surprise of 4.2%. In fact, the company has a record of reporting negative earnings surprises in recent quarters with lower-than-expected earnings reported in three of the last four quarters. Consequently, it has underperformed the Zacks Consensus Estimate by an average of 2.1% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
Whirlpool Corporation Price and EPS Surprise
Whirlpool Corporation Price and EPS Surprise | Whirlpool Corporation Quote
Factors Influencing this Quarter
Though Whirlpool’s surprise history is not very impressive, it demonstrated strength in fourth-quarter 2016 with the top line and bottom line jumping year over year. The company has been riding on its innovation strategy that helps it tap additional sales and gain market share. Moreover, its solid integration and cost-productivity activities have been enhancing performance. These factors, along with a robust brands portfolio have been growth drivers for the stock.
Notably, the company’s estimates have been stable ahead of first-quarter 2017 results. The Zacks Consensus Estimate of $2.79 per share for the first quarter, reflect growth of nearly 6% from the prior-year quarter. Moreover, analysts polled by Zacks expect revenues of $4.77 billion for the first quarter, displaying nearly 3.4% growth from the year-ago quarter.
However, Whirlpool has underperformed the broader sector on a year-to-date basis. Shares of Whirlpool dipped 6.8%, while the Zacks categorized Consumer Discretionary sector gained 7.7%.
The company continues to grapple with currency woes, which are expected to linger and hurt results in 2017, though by a modest amount. Further, weak demand in some regions poses concerns.
So, let’s wait and see if Whirlpool can counter the hurdles and rise up to report an earnings beat in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that Whirlpool is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Whirlpool is currently at 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both are pegged at $2.79. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Whirlpool currently carries a Zacks Rank #3 (Hold). While the company’s current Zacks Rank increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
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:
Panera Bread Company , scheduled to release earnings on Apr 25, currently has an Earnings ESP of +2.21% and a Zacks Rank #2 (Buy).
Newell Brands Inc. (NWL - Free Report) , scheduled to report earnings on May 8, currently has an Earnings ESP of +13.79% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amazon.Com, Inc. (AMZN - Free Report) , expected to release earnings on Apr 27, currently has an Earnings ESP of +7.62% and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks ""Strong Sells"" absolutely free >>.