Yahoo Finance Inflation, Supply-Chain Woes to Mar Whirlpool (WHR) Q4 Earnings
Whirlpool Corporation WHR is slated to release fourth-quarter 2022 results on Jan 30, after the closing bell. The household appliance company is expected to have witnessed revenue and earnings declines in the to-be-reported quarter.
For fourth-quarter revenues, the Zacks Consensus Estimate is pegged at $5.1 billion, suggesting a 13.2% decline from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for fourth-quarter earnings has moved up 0.7% in the past 30 days to $3.43, indicating a 44.1% decrease from the year-ago quarter’s reported figure.
We expect the company’s fourth-quarter total revenues to decrease 9.6% year over year to $5.3 billion and the bottom line to plunge 47.4% to $3.23 per share.
For 2022, the Zacks Consensus Estimate is pegged at $19.9 billion, suggesting a 9.7% decline from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for 2022 earnings of $19.25 indicates a 27.6% decrease from the year-ago quarter’s reported figure. We expect the company’s 2022 total revenues to decline 8.8% year over year to $20.1 billion and the bottom line to decrease 28.5% to $19.00 per share.
The company delivered a negative earnings surprise of 19.7% in the last reported quarter. However, the bottom line beat estimates by 1.8%, on average, over the trailing four quarters.
Key Points to Note
Whirlpool has been reeling under a challenging environment and sluggish demand from rising inflation. Global supply-chain disruptions and rising raw material costs, along with the ongoing war in Ukraine and unfavorable currency, are likely to have acted as other headwinds.
The company has been witnessing elevated raw materials, freight and logistics costs, as well as energy costs. Management earlier expected cost inflation to persist throughout the first half of 2023. Consequently, raw material inflation was forecast to hurt its margin by 750 bps in 2022.
On its last reported quarter’s earnings call, management trimmed the 2022 view. For 2022, Whirlpool envisioned a net sales decline of 9% to $20.1 billion, which compares unfavorably with the earlier stated $20.7 billion. On a GAAP basis, Whirlpool expected earnings per share of $5, down from the $9.50-$11.50 mentioned earlier. On an ongoing basis, the metric was predicted to be $19, down from the prior stated $22-$24.
However, the company has been undertaking cost-based pricing efforts to help offset raw material inflation. It has also been on track with early and decisive actions to protect margins and productivity amid the ongoing supply-chain constraints and significant inflationary pressures.
Whirlpool Corporation Price and EPS Surprise
Whirlpool Corporation price-eps-surprise | Whirlpool Corporation Quote
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Whirlpool this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Whirlpool currently has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
BJ's Wholesale BJ currently has an Earnings ESP of +18.48% and a Zacks Rank #3. BJ is likely to register bottom and top-line growth when it reports fourth-quarter fiscal 2022. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.9 billion, suggesting 12.5% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal fourth-quarter earnings is pegged at 88 cents, suggesting 10% growth from 80 cents reported in the year-ago quarter. The consensus mark has moved down 2.3% in the past 30 days.
Las Vegas Sands LVS currently has an Earnings ESP of +8.47% and a Zacks Rank #3. LVS is likely to register bottom and top-line growth when it reports fourth-quarter 2022. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.19 billion, suggesting 18% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Las Vegas Sands’ fiscal fourth-quarter earnings is pegged at a loss of 10 cents, suggesting a 54.6% improvement from a loss of 22 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past 30 days.
Take-Two Interactive Software TTWO currently has an Earnings ESP of +5.99% and a Zacks Rank #3. TTWO is likely to register top-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.45 billion, suggesting 66.9% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Take-Two Interactive Software’s fiscal third-quarter earnings is pegged at 89 cents, suggesting a 39% decline from $1.46 reported in the year-ago quarter. The consensus mark has moved up by a penny in the past 30 days.
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Whirlpool Corporation (WHR) : Free Stock Analysis Report
Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
TakeTwo Interactive Software, Inc. (TTWO) : Free Stock Analysis Report
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
