Ahead Of Whirlpool’s Q2 Results

Home appliances giant Whirlpool Corp. (WHR) is scheduled to publish its second-quarter numbers after the bell on Wednesday, July 22, with Thomson Reuters’ analysts expecting earnings of $0.87 per share on revenue of $3.51 billion.

The company has been proactively taking actions to protect cash and build liquidity to solidify its ability to manage through the ongoing COVID-19 pandemic.

With decisive actions to sustain margins, the company continues to adjust supply chain and labor levels to match demand environment, aggressively reduce structural and discretionary costs, capture raw material deflation opportunities, and continue to effectively and efficiently manage working capital.

Year-ago Numbers

In the second-quarter of 2019, the company reported GAAP net income of $67 million or $1.04 per share on net sales of $5.2 billion. Ongoing EPS was $4.01 for the second quarte of fiscal 2019.

Q1 Highlights

Net earnings available to Whirlpool plunged to $152 million or $2.41 per share from the prior year’s $471 million or $7.31 per share. Wall Street analysts expected earnings of $2.62 per share for the quarter.

Net sales declined 9% to $4.33 billion from $4.76 billion generated a year ago.

FY20 View

Whirlpool anticipates a U-type recovery throughout 2020, resulting in a full year net sales decline of about 13% – 18%, and organic net sales decrease of 10% – 15%. Also, the company sees a majority of the decline occurring in the second quarter, “followed by a slow recovery in the third quarter, and a slight growth in the fourth quarter.” Ten Wall Street analysts estimate a 16.50% decline in fiscal 2020 sales.

Although the company expects to see intensified demand pressure in the second quarter, it remains confident that the company’s “underlying business continues to make strong progress” in its return to profitability.

Stock Movement

The stock has been trading in the range of $64.00 – $163.64 for the past one year, and closed Tuesday’s trade at $143.76, up 70 cents or 0.49%. Trading volume was 512K versus an average volume of 811K shares.

Company Snapshot

With about $20 billion in annual sales, 77,000 employees and 59 manufacturing and technology research centers in 2019, Whirlpool markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, Indesit and other major brand names in nearly every country throughout the world.

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