Shares of Whirlpool Corporation ( WHR ) hit a new 52-week
high of $122.80 on Tuesday, May 7, driven by the company's robust
bottom-line results for the first quarter of 2013. This Zacks Rank
#2 (Buy) company eventually closed at $122.65, representing a
healthy return of approximately 21.1% from the closing price of
$101.29 on Dec 31, 2012. Average volume of shares traded over the
last 3 months stands at approximately 1,174,950.GENL ELECTRIC (GE): Free Stock Analysis ReportNORDSTROM INC (JWN): Free Stock Analysis ReportV F CORP (VFC): Free Stock Analysis ReportWHIRLPOOL CORP (WHR): Free Stock Analysis
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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 the new high.
With respect to earnings surprise, Whirlpool has beaten the Zacks
Consensus Estimate thrice in the trailing 4 quarters, topping it by
1.0% in the first quarter of 2013. The average positive surprise in
the trailing 4 quarters comes to 2.8%.
On Apr 24, Whirlpool reported outstanding bottom-line results for
the first quarter of 2013. Adjusted quarterly earnings of $1.97 per
share were higher than the year-ago quarter number of $1.41, and
surpassed the Zacks Consensus Estimate of $1.95. The robust
bottom-line performance was attributable to the company's sustained
focus on cost and capacity reduction initiatives, along with better
price and product mix.
Buoyed by better-than-expected bottom-line results, Whirlpool
reiterated its adjusted earnings guidance range of $9.25-9.75 per
share in 2013, up 31-38% from 2012. Currently, the Zacks Consensus
Estimate for 2013 is $9.72 per share, which nudged up nearly 1.3%
in the last 30 days.
Alongside its strong first-quarter results, Whirlpool's growth
prospects look promising. 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 risks 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 Electrolux AB, LG, Samsung, General
Electric Co. ( GE ) and Haier
Electronics Group. 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
62.5 cents. This currently yields a solid 2.0%, with a payout ratio
of 28.0%. We believe that its consistent dividend payments and
increments reflect the growth potential of its earnings and its
cash flow generation capabilities.
Simultaneously, companies such as Nordstrom Inc.
( JWN ) and
V.F. Corporation ( VFC ) achieved new
52-week highs of $58.66 and $180.01, respectively, on Tuesday, May