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Why Is Whirlpool (WHR) Up 12% 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 12% in that time frame, outperforming the S&P 500.

But investors have to be wondering, 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 its most recent earnings report in order to get a better handle on the important drivers.

Whirlpool Q2 Earnings Miss Estimates, Outlook Cautious 

Whirlpool posted second-quarter fiscal 2025 results, wherein the top line was in line with the Zacks Consensus Estimate, while the bottom line missed estimates.  Meanwhile, both sales and earnings per share (EPS) declined year over year.  

The appliance maker reported second-quarter adjusted EPS of $1.34 per share, showcasing a decline from $2.39 per share reported in the year-ago period. Also, the metric fell short of the Zacks Consensus Estimate of $1.54 per share.

Net sales of $3.77 billion declined 5.4% year over year. The decline in sales was primarily driven by weakened global consumer demand, particularly in North America and Latin America. The company faced volume pressure from intensified competition, with foreign rivals pre-loading Asian imports ahead of tariff implementations, leading to a highly promotional environment. Additionally, unfavorable currency exchange rates further weighed on performance. 

While major domestic appliance (MDA) segments in North America, Latin America, and Asia reported declines, the Small Domestic Appliances (SDA) segment delivered growth, partially offsetting broader weakness.

Quarterly gross profit was $610 million, down 2.6% from $626 million reported in the year-ago quarter. The gross margin expanded 50 basis points (bps) year over year to 16.2%.

Selling, general and administrative (SG&A) expenses declined 0.8% year over year to $397 million. As a percentage of net sales, SG&A expenses expanded 70 bps year over year to 10.5%. The ongoing EBIT of $200 million fell 5.7% from $212 million in the year-ago quarter. The ongoing EBIT margin of 5.3% remains flat year over year.

WHR’s Region-Wise Performance Details

Net sales for the MDA North America segment declined 4.7% year over year to $2.45 billion. Excluding currency effects, Whirlpool’s net sales declined 4.6% year over year in North America due to weak consumer sentiment that pressured both demand and product mix. The market remained highly promotional, intensified by foreign competitors aggressively pre-loading Asian imports ahead of impending tariffs. The segment’s EBIT decreased 11.7% year over year to $144 million, and the EBIT margin contracted 40 bps to 5.9% owing to volume contraction being partially offset by cost-saving initiatives.

Net sales from MDA Latin America declined 10% year over year to $806 million. Excluding currency, the segment’s sales declined 0.9% year over year, driven by implemented pricing actions offset by negative consumer demand in Mexico. The segment’s EBIT of $48 million declined 7.7% year over year. The EBIT margin expanded 20 bps year over year to 6%, attributable to favorable price/mix and cost takeout, partially offset by the negative impact of currency.

Net sales in MDA Asia decreased 5.9% year over year to $320 million. Excluding the currency impacts, sales fell 3.7% due to industry decline, partially offset by sustained strong share gains. The segment’s EBIT of $23 million increased 11.2% year over year. Segmental EBIT margin of 7.1% expanded 90 bps, driven by cost take-out actions.

Net sales in SDA Global increased 7.5% year over year to $201 million. Excluding the currency impacts, sales increased 6.8% due to growth from new product launches and a robust direct-to-consumer business despite an unfavorable industry in North America. The segment’s EBIT of $35 million reflected a 32.9% increase from $26 million reported in the year-ago quarter. Segmental EBIT margin of 17.3% expanded 340 bps from 13.9% in the prior-year quarter due to favorable price/mix.

Whirlpool’s Financial Health Snapshot

Whirlpool ended the first quarter with cash and cash equivalents of $1.07 billion, long-term debt of $6.2 billion, and total stockholders’ equity of $2.6 billion. The company declared a dividend of $1.75 per share in the second quarter of 2025.

In the second quarter of 2025, Whirlpool used cash of $702 million from operating activities. It reported a negative free cash of $856 million. WHR incurred capital expenditure of $154 million in the same period.

WHR’s 2025 Outlook

Whirlpool provided its sales guidance for 2025, anticipating net sales of $15.8 billion, down from $16.6 billion reported in the year-ago period. The company anticipates an ongoing EBIT margin of 5.7%, indicating a rise from 5.3% reported in 2024. Management expects the GAAP and adjusted tax rate to be 20-25% for 2025.

Whirlpool expects its GAAP EPS for 2025 to be between $5.00 and $7.00 against a loss of $5.87 per share. Ongoing EPS is expected to be between $6.00 and $8.00, down from $12.21 per share reported in 2024. The ongoing earnings guidance includes approximately $200 million of cost actions. Cash provided by operating activities is expected to be nearly $850 million, with an estimated free cash flow $400 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -42.88% due to these changes.

VGM Scores

At this time, Whirlpool has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Whirlpool has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.


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