Back to top

Image: Bigstock

Factors Likely to Impact Whirlpool's (WHR) Earnings in Q1

Read MoreHide Full Article

Whirlpool Corporation (WHR - Free Report) is slated to release first-quarter 2020 results on Apr 30, after the closing bell. Notably, the company delivered a negative earnings surprise of 1.9% in the last reported quarter. However, the bottom line beat estimates by 4.7%, on average, over the trailing four quarters.

The Zacks Consensus Estimate for the company’s first-quarter earnings stands at $2.75, indicating an 11.6% decline from the year-ago quarter’s reported figure. Further, the consensus mark decreased by 7 cents in the past 30 days. For first-quarter revenues, the consensus mark is pegged at $4.38 billion, suggesting an 8.1% decline from the prior-year quarter’s reported figure.

Factors to Note

Whirlpool has been reeling under sluggish demand and supply-chain disruptions due to the government-ordered shutdown of various manufacturing facilities, led by the ongoing COVID-19 crisis. In a recent press release, the company stated that earnings before interest and taxes during first-quarter 2020 are likely to be marginally higher than the earlier guided view of $25-$40 million. Such downsides are likely to weigh on its first-quarter performance.

Moreover, persistent sluggishness in Mexico due to weak industry demand has been hurting sales in the Latin America region. Apart from these, cost inflation, tariffs and logistic expenses as well as increased marketing and technology investments, and adverse currency act as deterrents.

Nevertheless, management is looking into every nook and cranny to drive growth. In this regard, the company’s robust product pipeline, solid innovation and cost-productivity initiatives focused on improving business efficiency bode well. To counter raw-material inflation and other cost headwinds, the company has been implementing global cost-based pricing for trade customers along with initiatives to cut fixed overhead expenses.

Whirlpool Corporation Price and EPS Surprise

What the Zacks Model Says

Our proven model doesn’t 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 odds 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 carries a Zacks Rank #4 (Sell) and Earnings ESP of -1.87%.

Stocks With Favorable Combinations

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:

DISH Network Corporation currently has an Earnings ESP of +6.60% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Discovery, Inc. currently has an Earnings ESP of +3.60% and a Zacks Rank #3.

Charter Communication, Inc. (CHTR - Free Report) presently has an Earnings ESP of +1.60% and a Zacks Rank #3.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Whirlpool Corporation (WHR) - $25 value - yours FREE >>

Charter Communications, Inc. (CHTR) - $25 value - yours FREE >>

Published in