) hit a new 52-Week high of $117.63 on Monday, Mar 4, as the
company continues to post robust quarterly results and provided
impressive fiscal 2013 outlook. This Zacks Rank #1 (Strong Buy)
home appliances company eventually closed at $117.36,
representing a healthy return of approximately 15.9% from the
closing price of $101.29 on Dec 31, 2012. Average volume of
shares traded over the last 3 months stands at approximately
Drivers that Triggered Momentum
An impressive record of beating the quarterly earnings
expectations, a positive fiscal 2013 outlook and a decent
dividend yield enabled the shares of Whirlpool to reach a new
With respect to earnings surprise, Whirlpool has beaten the
Zacks Consensus Estimate thrice in the trailing 4 quarters,
topping it by 3.2% in the fourth quarter of 2012. The average
positive surprise in the trailing 4 quarters comes to 9.0%.
On Jan 31, 2013, 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 robust bottom-line performance
was primarily driven by the company's sustained focus on cost and
capacity reduction initiatives, along with better price and
Buoyed by better-than-expected bottom-line results, Whirlpool
now 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 climbed nearly 5% 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. It is
considered to be the largest home-appliances manufacturer in the
world, ahead of
), LG, Samsung,
General Electric Co.
Haier Electronics Group Company, Ltd
). Moreover, the company is placed among the leading home
appliances makers in India and Europe.
Whirlpool is also known for its shareholder-friendly moves.
Since 1983, the company has increased its dividend from 22.5
cents to 50 cents. This currently yields a solid 1.7%, with a
payout ratio of 40%. We believe that its continuous dividend
payments and increments reflect the growth potential of its
earnings and cash flow generation capabilities.
Stock's Key Indicators
Whirlpool currently trades at a forward P/E of 12.31x,
significantly lower than the Zacks industry average of 15.03x.
Again its price-to-book (P/B) and price-to-sales (P/S) ratios of
2.09 and 0.51, respectively, are lower than the Zacks industry
average. Moreover, the company's return-on-investment (ROI) and
return-on-equity (ROE) of 8.9% and 12.7%, respectively, are
significantly higher than the Zacks industry average. Given the
company's compelling fundamentals and earnings surprise history,
we believe that its EPS will continue to grow further.
AB ELECTROLUX (ELUXY): Get Free Report
GENL ELECTRIC (GE): Free Stock Analysis
HAIER ELECTRONC (HRELY): Get Free Report
WHIRLPOOL CORP (WHR): Free Stock Analysis
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