Whirlpool WHR is one of the world's largest manufacturers of home appliances. The company's portfolio of products can be broadly classified into laundry appliances, refrigerators and freezers, cooking appliances, and other small household appliances such as dishwashers and mixers.
The stock is a current Zacks Rank #5 (Strong Sell), with analysts slashing their EPS expectations across the board.
Image Source: Zacks Investment Research
In addition, the company resides in the Zacks – Household Appliances industry, which is currently ranked in the bottom 4% of all Zacks industries.
Whirlpool Cuts Guidance
WHR’s latest quarterly results disappointed investors, with the stock facing notable selling pressure following the release. Concerning headline figures, sales of $3.8 billion fell 5.5% YoY alongside a 44% decline in adjusted EPS.
As we can see below, the company’s top line has been very soft over recent years, seeing little growth.
Image Source: Zacks Investment Research
What really soured sentiment, though, was the company’s guidance cut, with WHR cutting its current year free cash flow, adjusted EPS, and EBIT margin outlooks. Still, despite the negativity, WHR shares have bounced back nicely off post-earnings lows so far, up more than 10% overall over the last three months.
Image Source: Zacks Investment Research
CEO Mark Bitzer remains confident, stating –
"As expected, the second quarter continued to be impacted by competitors stockpiling Asian imports into the U.S. Despite this, we are well positioned in North America with a robust pipeline of new products, the industry's leading U.S. manufacturing footprint, and favorable housing demand fundamentals. We are confident in our long-term strategy and believe that evolving tariff policies will ultimately support domestic manufacturers."
Bottom Line
Negative earnings estimate revisions, stemming from guidance cuts, paint a challenging picture for the company’s shares in the near term.
Whirlpool WHR is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Whirlpool Corporation (WHR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
