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James Li
James Li
Articles (895)  | Author's Website |

Whirlpool Soars on Strong Global Earnings Performance in 2nd Quarter

Company further increases full-year earnings guidance

July 23, 2019 | About:

Whirlpool Corp. (NYSE:WHR), the home appliances manufacturer, said on Monday that second-quarter earnings increased over $10.50 per share from the prior-year quarter, driven by strong performance across the company’s global regions.

The Benton Harbor, Michigan-based company reported net earnings of $1.04 per share during the three months ending June 30, compared to a net loss of $9.50 per share during the prior-year quarter.

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Company reports strong performance around the globe despite global macro challenges

Whirlpool CEO Marc Bitzer said the company’s performance during the quarter suggests it is making progress on its “robust strategy for creating shareholder value” as it laid out during its May 23 Investor Day. Net revenue of $5.2 billion exceeded the consensus estimate of $4.9 billion, according to EarningsWhispers.com. The increase in revenues from the prior-year quarter was driven by sales growth in the company’s North America, Latin America and Asia regions.

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Whirlpool North America reported an Ebit margin of 12.4%, up 0.5% from the prior-year quarter on favorable product price and mix. The company’s core products include Whirlpool, KitchenAid, Maytag and JennAir.

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Whirlpool Latin America net sales increased $36 million from the prior-year quarter, including a $20-million gain stemming from the Brazil trucker strike during second-quarter 2018. Despite increased brand transition investments in China, Whirlpool Asia net sales increased $2 million from the prior-year quarter.

Stock rises in aftermarket trading on earnings beat and higher earnings guidance

Shares of Whirlpool increased over 4% in aftermarket trading as the company outperformed its top-line and bottom-line consensus estimates and provided higher guidance for the year. Whirlpool expects earnings between $17.80 per share and $18.55 per share, up from the guidance range provided in the first quarter of $14.05 to $15.05 per share.

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GuruFocus ranks the company’s profitability 6 out of 10: Although the company’s operating margin of 6.10% underperforms 60.67% of global competitors, Whirlpool’s Piotroski F-score ranks 5 out of 9 on positive indicators like increasing gross margins year-over-year and good earnings quality based on its Sloan ratio of -1.88% and the relative difference between operating cash flow and net income.

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Gurus with large holdings in Whirlpool include Primecap Management (Trades, Portfolio), Tom Gayner (Trades, Portfolio) and Charles Brandes' (Trades, Portfolio) Brandes Investments.

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Disclosure: No positions.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

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