Whirlpool Beats on Earnings and Lifts Full-Year Guidance

Home appliance company Whirlpool Corporation (NYSE: WHR) reported better-than-expected second quarter earnings and raised its full-year EPS guidance on Monday. Despite outpacing estimates, the Company’s share price has lost up to 4% on the news.

Whirlpool said it earned USD 4.01 a share for the period ended June 30, topping Wall Street’s expectation of USD 3.71. Sales came in at USD 5.2 Billion, up from USD 5.1 Billion the year-quarter earlier.

By region, the Company posted revenue growth in North America, Latin America, and Asia. Whirlpool Europe, Middle East and Africa saw declines, however. The total area delivered net sales of USD 1.0 Billion compared to USD 1.1 Billion a year-quarter earlier.

Whirlpool expects full-year adjusted earnings to fall between USD 14.75 and USD 15.50 per share, up from its prior forecast of between USD 14 and USD 15 per share.

Earlier this month, the Company sold its Embraco compressor business for USD 1.08 Billion to electric motor manufacturer, Nidec Corporation. Jim Peters, Whirlpool Chief Financial Officer, said the Company expects to repay a USD 1 Billion term loan with net proceeds from the sale. “As we strengthen our balance sheet, drive margin expansion and generate cash, we will maintain our disciplined approach to capital allocation with continued investments in our business and solid returns to our shareholders,” said Peters.

Whirlpool throughout the year has been faced higher production costs resulting from tariffs on imported steel and aluminum, both major components in its machines. On a conference call with analysts, CEO Marc Bitzer said raw material and tariff inflation is now only expected to grow Whirlpool’s production costs by USD 150 Million. This compares to previous estimates of up to USD 250 Million for the year.

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  1. Daniel Rubin 1 month ago
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