Whirlpool's India arm misses Q4 profit view on stiff competition, higher input costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2024
0mins
Source: reuters
- Whirlpool of India's Q4 Performance: Whirlpool of India reported a smaller-than-expected fourth-quarter profit due to stiff competition and higher input costs, with a 24% rise in net profit but missing analysts' estimates.
- Revenue Growth: The revenue from operations for Whirlpool of India rose by nearly 4% to 17.34 billion rupees in the quarter ending March 31.
- Expense Surge: Expenses for Whirlpool of India surged by 2.2%, primarily driven by a nearly 31% increase in input costs.
- Market Context: High temperatures in India led to increased demand for cooling appliances, benefiting companies like Whirlpool India, but the company faces tough competition and challenges from new players and premium brands diversifying into mass markets.
- Industry Peers and Stock Performance: Rival companies like Havells India, Blue Star, and Voltas also reported varying quarterly profit performances, with Whirlpool Corporation selling a stake in its Indian unit earlier in the year.
Analyst Views on WHR
Wall Street analysts forecast WHR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WHR is 64.50 USD with a low forecast of 51.00 USD and a high forecast of 78.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
0 Buy
2 Hold
2 Sell
Moderate Sell
Current: 89.660
Low
51.00
Averages
64.50
High
78.00
Current: 89.660
Low
51.00
Averages
64.50
High
78.00
About WHR
Whirlpool Corporation is a home appliance company. The Company is a manufacturer of kitchen and laundry appliances. Its segments include Major Domestic Appliances (MDA) North America; MDA Latin America; MDA Asia, and Small Domestic Appliances (SDA) Global. The Company in the United States and Canada, market and distributes home appliances and other consumer products under the Whirlpool, KitchenAid, Maytag, Amana, InSinkErator, JennAir, affresh, Swash, everydrop, and Gladiator brand names to retailers, distributors, and builders, and directly to consumers. In Latin America, the Company produces, market and distributes primarily Consul, Brastemp, Whirlpool, KitchenAid, Acros, Maytag, and Eslabon de Lujo brand names. In Asia, the Company market primarily under the Whirlpool, Elica, Maytag, KitchenAid, and Indesit brand names. In SDA Global, the Company markets the appliances under the KitchenAid brand name to retailers, distributors, and to consumers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
