Whirlpool Corp.’s stock experienced a decrease of over 2% in after-hours trading on Monday, following a year-on-year drop in sales due to reduced promotions. However, the appliance maker remains optimistic about benefiting from a housing recovery.
Transformation Towards Higher Growth
Chief Executive Marc Bitzer expressed confidence in Whirlpool’s ongoing transformation towards becoming a higher-growth, higher-margin business. Bitzer believes that the company is well-positioned to capitalize on the demand recovery driven by the housing market.
Improved Financial Performance
In the second quarter, Whirlpool recorded earnings of $85 million, or $1.55 per share, a significant turnaround from the loss of $371,000, or $6.62 per share, in the same quarter last year. Adjusting for one-time items, the company’s earnings per share stood at $4.21.
Sales Decline and Factors Behind It
Whirlpool reported a 6% decrease in sales, amounting to $4.79 billion. This decline can be attributed to promotions nearing pre-pandemic levels, which was not the case in the first half of the previous year.
Analyst Expectations
Analysts polled by FactSet had predicted adjusted earnings of $3.76 per share on sales totaling $4.8 billion. Whirlpool slightly missed these projections.
Company Outlook
Whirlpool maintained its full-year adjusted earnings per share guidance in the range of $16 to $18. It also expects sales to reach approximately $19.4 billion by the end of the year.
Stock Performance
Year-to-date, Whirlpool’s stock has gained nearly 7%, although it has underperformed compared to the S&P 500 index, which has seen a 19% increase during the same period.
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