Whirlpool's Weak FY2025 Outlook Disappoints Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7h ago
0mins
Source: stocktwits
- Earnings Downgrade: Whirlpool expects FY2026 ongoing earnings per diluted share of approximately $7.00, falling short of analyst expectations of $7.21, indicating persistent profitability issues that may undermine investor confidence.
- Sales Decline: Projected FY2025 sales of $15.5 billion represent a 6.5% decrease year-over-year, reflecting weak market demand that could place the company at a competitive disadvantage in the future.
- Debt Reduction Plan: The company aims to reduce debt by approximately $400 million, a strategy intended to optimize capital allocation and maximize shareholder value, though its effectiveness may take time to materialize, potentially exerting short-term pressure on stock prices.
- Negative Market Reaction: Whirlpool reported fourth-quarter adjusted earnings per share of $1.10, significantly below Wall Street's consensus of $1.52, leading to an over 8% drop in share price on Thursday, reflecting investor disappointment regarding the company's future performance.
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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: 80.870
Low
51.00
Averages
64.50
High
78.00
Current: 80.870
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.
WHIRLPOOL STOCK DROPS 8% FOLLOWING Q4 REVENUE SHORTFALL
- Stock Performance: WhirlPool shares fell by 8% following a disappointing revenue report for the fourth quarter.
- Revenue Miss: The company's fourth-quarter revenue did not meet market expectations, contributing to the decline in stock value.
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Whirlpool Reports Q4 Net Earnings of $108 Million, Down from Last Year
- Net Earnings Recovery: Whirlpool Corporation reported fourth-quarter net earnings of $108 million, or $1.91 per share, a significant recovery from a loss of $393 million or $7.10 per share in the prior year, indicating improved financial performance.
- Goodwill Impairment Reduction: The impairment of goodwill and other intangibles decreased to $106 million from $381 million last year, reflecting progress in asset management and overall financial health.
- Slight Sales Decline: Quarterly net sales fell to $4.098 billion from $4.136 billion year-over-year, highlighting challenges from soft market demand and intensified competition.
- Cautious Future Outlook: The company anticipates GAAP earnings per share of approximately $6.25 and net sales between $15.3 billion and $15.6 billion for fiscal year 2026, projecting a 5% growth, yet falling short of analysts' expectations of $7.21 per share and $15.59 billion in revenue, indicating future uncertainties.
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