), the world's largest maker of home appliances, remains on our
Outperform list as it continues to post robust quarterly results,
provides impressive fiscal 2013 outlook and sustains growth
through its innovative products and enhancement of global
Driven by sustained focus on cost and capacity reduction
initiatives, along with better price and product mix, Whirlpool
reported outstanding bottom-line results for the fourth quarter
of 2012. Adjusted quarterly earnings of $2.29 per share were
significantly higher than the year-ago quarter's earnings of 32
cents and surpassed the Zacks Consensus Estimate of $2.22. The
average positive surprise in the trailing four quarters comes to
9.0%. Moreover, Whirlpool's cost and capacity reduction measures
are noteworthy, resulting in improved margins.
Buoyed by better-than-expected bottom-line performance,
Whirlpool expects to deliver adjusted earnings in the range of
$9.25-$9.75 per share in 2013, up 31%-38% from 2012. Currently,
the Zacks Consensus Estimate for 2013 stands at $9.54 per share
which had risen 2.8% in the last 30 days.
Apart from strong fourth-quarter results, Whirlpool's growth
story looks compelling. We believe that the company's sustained
focus on developing new products along with cost-reduction
initiatives and diversification of business across the
world to eliminate the geographical risk arising from
concentration in one region, bodes well for future growth.
Over the last 101 years, Whirlpool has emerged as the leading
manufacturer and supplier of major home appliances. Whirlpool is
considered to be the largest home-appliances manufacturer in the
world, ahead of
), LG, Samsung and
General Electric Co.
). Moreover, the company is placed among the leading home
appliances makers in India and Europe.
Other Stocks to Consider
Currently, Whirlpool has a Zacks Rank #1 (Strong Buy). Apart
from Whirlpool, other stock worth considering in the home
furnishing-appliance industry is
Haier Electronics Group Company, Ltd.
also holds a Zacks Rank #1 (Strong Buy).
AB ELECTROLUX (ELUXY): Get Free Report
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WHIRLPOOL CORP (WHR): Free Stock Analysis
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