), the world's largest home-appliances manufacturer, to beat
expectations when it reports third-quarter 2013 results on Oct
Why a Likely Positive Surprise?
Our proven model shows that Whirlpool may beat earnings
because it has the right combination of 2 key components.
Positive Zacks ESP:
Whirlpool currently has an
of +0.38%. This is because the Most Accurate Estimate stands at
$2.65 per share, while the Zacks Consensus Estimate is pegged at
Zacks #3 Rank (Hold):
Note that stocks with a Zacks Rank #1, 2 and 3 have a higher
chance of beating earnings. The Sell rated stocks (#4 and 5)
should never be considered going into an earnings
The combination of Whirlpool's Zacks Rank #3 (Hold) and
Earnings ESP of +0.38% makes us confident of a positive earnings
beat on Oct 22.
What is Driving Better-than-Expected Earnings?
Over the last 101 years, Whirlpool has emerged as the leading
manufacturer and supplier of major home appliances. We believe
that the company's recent collaboration with
SodaStream International, Ltd.
) to develop an in-home carbonated system will not only help
Whirlpool expand its KitchenAid branded product category but will
also boost its top line and induce a competitive edge.
Furthermore, we consider Whirlpool's consistent focus on
developing new products, its cost-cutting measures, and
diversification of business across the world - to eliminate
geographical risks arising from concentration in one region - to
bode well for future growth.
The company has surpassed the Zacks Consensus Estimate thrice
in the trailing four quarters with an average surprise of
Other Stocks to Consider
Whirlpool is not the only firm we are looking up to this
earnings season. The following companies are also likely to beat
earnings in the to-be-reported quarter:
General Electric Company
) with an Earnings ESP of +1.85% and a Zacks Rank #3 (Hold).
Fortune Brands Home & Security, Inc.
) with an Earnings ESP of +2.44% and a Zacks Rank #3 (Hold).
FORTUNE BRD H&S (FBHS): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
SODASTREAM INTL (SODA): Free Stock Analysis
WHIRLPOOL CORP (WHR): Free Stock Analysis
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