Key Stats for Whirlpool Stock
- Price change for Whirlpool stock in last 6 months: -55%
- $WHR Stock Price as of Aug. 3: $39
- 52-Week High: $97
- $WHR Stock Price Target: $53
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What Happened?
Whirlpool (WHR) stock fell after the appliance maker posted a Q2 loss that was much wider than Wall Street expected.
The company lost an adjusted $0.21 per share, well below the $0.05 per share loss analysts had penciled in. Revenue also missed, coming in at $3.52 billion versus the $3.55 billion expected, and down nearly 7% from $3.77 billion a year ago.
Looking deeper into the numbers,
The company’s ongoing EBIT margin came in at just 1.8%, a steep drop from 5.3% in the same period last year. In the core North America business, net sales dipped 1.5% to $2.41 billion, and margins fell to 2.7% from 5.9%.
Management pointed to lower volumes along with pressure from tariffs, raw material costs, and higher fuel costs as the main culprits.
Latin America was a brighter spot on the sales side, growing net sales 7.8% to $868 million, though margins there also slipped, falling to 3.0% from 6.0%.
On guidance, Whirlpool is now projecting full-year adjusted earnings per share between $2.50 and $3.00. While that range does sit above the analyst consensus of $2.35, it’s a meaningful step down from the $3 to $3.50 range the company had guided to earlier this year.
Full-year revenue guidance came in at roughly $15 billion, just ahead of the $14.90 billion consensus.
CEO Marc Bitzer struck an upbeat tone despite the miss, saying he was encouraged by the sequential margin improvement in the quarter, crediting the company’s price increases, ongoing cost-cutting efforts, and new product launches for the progress.
The company executed pricing actions in North America during the quarter and also announced new price increases in Latin America. For the full year, Whirlpool expects cash from operating activities of about $700 million and free cash flow above $300 million.
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What the Market Is Telling Us About Whirlpool Stock
The mixed reaction in Whirlpool stock, a strong pre-earnings rally followed by an after-hours drop, shows investors are weighing two different stories at once.
On one hand, the quarter itself was rough, with a bigger-than-expected loss and a revenue miss. On the other, management is pointing to real progress on pricing and cost control that should show up more clearly in future quarters.
The guidance cut from the prior $3 to $3.50 range is likely what’s weighing most on Whirlpool stock right now, even though the new range technically still beats what analysts were modeling.
That gap between beating consensus while lowering the company’s own prior outlook is often what makes investors nervous, since it suggests the business still has real headwinds to work through in the back half of the year.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
