The chart below shows how WHR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WHR sees a +1.26% change in stock price 10 days leading up to the earnings, and a -6.32% change 10 days following the report. On the earnings day itself, the stock moves by -1.15%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Cost Reduction and Margin Improvement: Operationally, Whirlpool Corporation delivered substantial cost reduction initiatives of approximately $300 million while stabilizing and reversing negative input cost trends, resulting in a sequential increase in ongoing EBIT margin by 170 basis points over three consecutive quarters.
Shareholder Returns and Debt Reduction: The company returned approximately $400 million of cash to shareholders in dividends while paying down $500 million of debt, reinforcing its commitment to reducing debt levels.
Working Capital Efficiency: Whirlpool achieved significant working capital efficiency, resulting in $385 million in free cash flow, demonstrating strong cash generation capabilities.
Latin America Sales Growth: The MDA Latin America segment reported strong net sales growth of 7% year over year, driven by industry growth in Brazil and Mexico, with EBIT margin expanding by 240 basis points year over year to 7.6%.
Net Sales Growth and EBIT: The SDA Global business delivered year-over-year net sales growth of 6% for the quarter, with a strong EBIT margin of 14.3% for the full year, indicating robust performance in high-potential growth categories.
Negative
Sales Decline and Margin Shortfall: Net sales in MDA North America declined by 1% due to negative price mix, primarily from structural retailer destocking, resulting in EBIT margins of 6.7%, which fell short of expectations.
Margin Impact Analysis: Price and mix negatively impacted margins by 100 basis points, slightly below initial expectations, due to retailer destocking and strong sellout following the U.S. Presidential election.
Margin Impact from Investments: Marketing and technology investments had an unfavorable impact of 50 basis points on margins as the company increased spending on new products, which may not yield immediate returns.
Currency Impact on Margins: Currency fluctuations reduced margins by 25 basis points year over year, primarily due to the weakening of the Brazilian real against the U.S. dollar.
U.S. Housing Market Outlook: The company anticipates a slow recovery in the U.S. housing market, with no significant improvement factored into the 2025 outlook, indicating continued challenges in demand.
Earnings call transcript: Whirlpool Q4 2024 sees sharp stock drop despite EPS beat
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