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Whirlpool (WHR) to Report Q4 Earnings: What's in the Cards?

Whirlpool Corp.WHR is slated to release fourth-quarter 2016 results on Jan 26. Last quarter, the company had delivered a negative earnings surprise of 5.7%.

Further, it has mixed record of earnings surprises in recent quarters. However, the company has outperformed the Zacks Consensus Estimate by an average of 0.3% in the trailing four quarters. Let's see how things are shaping up for this announcement.

Whirlpool Corp. Price and EPS Surprise

Whirlpool Corp. Price and EPS Surprise | Whirlpool Corp. Quote

Factors Influencing this Quarter

Whirlpool is among the few companies, heavily investing in technologies, to produce differentiated products, in a bid to suit the needs of their end consumers. Though the company appears to be mostly dependent on the North American region for its revenues, it has been strengthening its presence in other parts of the world as well. Further, the company has been undertaking various acquisitions and integrating these into its business.

Additionally, Whirlpool has been striving to improve margins through a series of measures, including cost-based price increments and cost-reduction initiatives focused on improving business efficiency.

Further, the company's shares have been witnessing an uptrend in the last one year. Whirlpool's stocks have grown nearly 39.3% in the past one year, outperforming the Zacks categorized Consumer Discretionary sector's growth of 19.1%.

However, Whirlpool continues to feel the pinch of lingering currency headwinds and soft appliance demand in the U.S. and UK. These factors, along with further devaluation of the British Pound stemmed by Brexit, led the company to narrow its earnings guidance for 2016, following the dreary third-quarter results. Moreover, the company's top-line has missed the Zacks Consensus Estimate in six out of seven straight quarters.

So, let's wait and see if Whirlpool can counter the hurdles and rise up to report an earnings beat in the quarter to be reported.

Earnings Whispers

Our proven model does not conclusively show that Whirlpool is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:

Zacks ESP: Earnings ESP for Whirlpool is currently at 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both are pegged at $4.42. You may uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Whirlpool currently carries a Zacks Rank #2 (Buy). While the company's current Zacks Rank increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Tractor Supply Company TSCO , scheduled to release earnings on Feb 1, 2017, currently has an Earnings ESP of +1.09% and a Zacks Rank #2.

Michael Kors Holdings Ltd. KORS , scheduled to report earnings on Feb 7, 2017, currently has an Earnings ESP of +2.45% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Yum Brands Inc. YUM , slated to release earnings on Feb 8, 2017, currently has an Earnings ESP of +2.82% and a Zacks Rank #3 (Hold).

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Whirlpool Corp. (WHR): Free Stock Analysis Report

Yum Brands Inc. (YUM): Free Stock Analysis Report

Tractor Supply Co. (TSCO): Free Stock Analysis Report

Michael Kors Holdings Ltd. (KORS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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