Bear Of The Day: Whirlpool
2015年05月12日
The US dollar has surged significantly over the past few months, weighing on earnings of multinational companies. Currency headwinds and weakness in some of the key international markets will continue to hurt these companies this year.
About the Company
Based in Benton Harbor, MI, Whirlpool Corporation (WHR - Analyst Report) is one of the leading global manufacturers of home appliances, operating in more than 170 countries. It has 70 manufacturing and technology research centers and more than 100,000 employees around the world.
Disappointing Results and Guidance
The company missed the earnings estimates for Q1 2015--reporting adjusted earnings of $2.14 per share versus the Zacks Consensus Estimate of $2.49 per share. The miss was mainly attributable to currency headwinds and lower demand in Brazil - one of it's biggest markets.
Revenues came in at $4,846 million, up about 11% from the same period in 2014, but below the Zacks Consensus Estimate of $5,155 million. Sales got a boost from the acquisitions made by the company last year.
Due to falling demand and weak currency, the company is planning to reduce its workforce in Brazil by about 15%. The management also downgraded their earnings guidance for 2015. They now expect full-year earnings to be in the range of $12-$13 per share, down from $14-$15 per share expected earlier. Currency and softness in Brazil accounted for almost ($2.00) per share impact on the guidance.
Estimates Falling
Analysts have been cutting their estimates for the stock after quarterly results and lowered guidance. Zacks Consensus Estimates for the current and next year are now $11.45 per share and $15.75 per share respectively, down from $14.34 per share and $16.94 per share, 30 days ago. Declining estimates sent the stock to Zacks Rank # 5 last month.
The Bottom Line
Apart from a “Strong Sell” rank, the stock fares poorly on “Growth” and “Momentum” style scores too, with “F” on both.
