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Whirlpool Corporation (NYSE: WHR) Earnings Preview: Key Insights

  • Whirlpool Corporation (NYSE:WHR) is expected to report a year-over-year improvement in earnings per share (EPS) despite a decline in revenue for the fourth quarter of 2024.
  • The company's full-year revenue for 2024 is projected to decrease by 13.9%, but earnings estimates have slightly increased, indicating improved profitability.
  • Whirlpool's financial ratios, such as the price-to-earnings (P/E) and price-to-sales ratios, suggest a low market valuation relative to its earnings and revenue.

Whirlpool Corporation (NYSE:WHR), a leading global manufacturer of home appliances, is gearing up to release its fourth-quarter 2024 earnings on January 29, 2025. Wall Street is keenly awaiting the earnings per share (EPS) of $4.26 and revenue of approximately $4.23 billion. This earnings release is pivotal, offering insights into the company's financial health amid challenging market conditions.

Despite the global demand weakness and a tough U.S. market environment, Whirlpool's bottom line is expected to see year-over-year improvement. The Zacks Consensus Estimate for fourth-quarter revenues is $4.3 billion, a 16% decrease from the same quarter last year. However, the consensus estimate for quarterly earnings has seen an uptick of 0.9% over the past week to $4.39 per share, indicating a 14% rise from the previous year's quarter.

For the full year 2024, Whirlpool's revenue estimate stands at $16.8 billion, marking a 13.9% decline from the prior year. Despite this, the earnings estimate has risen by 0.3% to $12.31 per share. This suggests that while revenue is declining, the company is managing to improve its profitability, possibly through cost-cutting measures or efficiency improvements.

Whirlpool's financial metrics provide further context to its performance. The company has a price-to-earnings (P/E) ratio of approximately 13.12, indicating how the market values its earnings. Its price-to-sales ratio is 0.42, suggesting a relatively low market valuation compared to its revenue. The enterprise value to sales ratio is 0.82, showing the company's valuation in relation to its total sales, including debt and cash.

The upcoming earnings report is highly anticipated, as it could significantly influence Whirlpool's stock price. If the company surpasses expectations, the stock might see an upward movement. Conversely, a miss could lead to a decline in stock value. The sustainability of any immediate price changes and future earnings expectations will largely depend on the management's discussion of business conditions during the earnings call.