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Factors Likely to Affect Whirlpool's (WHR) Earnings in Q1

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·5 min read
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Whirlpool Corporation WHR is slated to release first-quarter 2022 results on Apr 25, after the closing bell. The household appliance company is expected to have witnessed revenue growth in the to-be-reported quarter.

For first-quarter revenues, the Zacks Consensus Estimate is pegged at $5.45 billion, suggesting 1.7% growth from the prior-year quarter’s reported figure. However, the Zacks Consensus Estimate for its first-quarter earnings moved down 6.4% in the past 30 days to $4.96, indicating a 31.1% decline from the year-ago quarter’s reported figure.

The company delivered an earnings surprise of 4.4% in the last reported quarter. The bottom line beat estimates by 14.9%, on average, over the trailing four quarters.

Whirlpool Corporation Price and EPS Surprise

Whirlpool Corporation Price and EPS Surprise
Whirlpool Corporation Price and EPS Surprise

Whirlpool Corporation price-eps-surprise | Whirlpool Corporation Quote

Key Points to Note

Whirlpool has been under pressure due to the global supply-chain disruptions and rising raw material costs. The supply-chain disruptions have resulted in higher freight costs. Also, increased investments in marketing and technology, and continued currency devaluation in Latin America are anticipated to have acted as deterrents. These factors are likely to have marred the company’s margin performance in the quarter under review.

On its last reported quarter’s earnings call, management expected supply-chain inefficiencies, particularly in distribution and labor, to continue. It also anticipated the global cost inflation in steel and resins to remain a headwind. Inflationary pressures are likely to have significantly impacted the first-quarter 2022 performance.

However, the company has been benefiting from strong customer demand and cost-based pricing initiatives. Gains from cost-saving efforts, including the curtailing of structural and discretionary costs, capturing raw material deflation opportunities, effectively managing working capital, and syncing supply-chain and labor levels with demand, are likely to have aided margins and productivity in the first quarter. The cost-based pricing actions are likely to have somewhat offset elevated raw material and logistic costs in the quarter under review.

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 has a Zacks Rank #4 (Sell) and an Earnings ESP of -5.49%.

Stocks With Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Sirius XM SIRI currently has an Earnings ESP of +3.23% and a Zacks Rank of 2. The company is likely to register an increase in the top line when it reports first-quarter 2022. The Zacks Consensus Estimate for quarterly earnings has been unchanged for the past 30 days at 8 cents per share, suggesting 14.3% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sirius’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.1 billion, which suggests a rise of 3.4% from the figure reported in the prior-year quarter. SIRI has delivered an earnings beat of 22%, on average, in the trailing four quarters.

Pool Corporation POOL has an Earnings ESP of +2.53% and a Zacks Rank of 2 at present. The company is likely to register an increase in the bottom line when it reports first-quarter 2022. The Zacks Consensus Estimate for quarterly earnings moved up 0.7% to $3.06 per share in the past 30 days, suggesting an increase of 26.5% from the year-ago quarter’s reported number.

Pool’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.25 billion, indicating a rise of 18% from the figure reported in the prior-year quarter. POOL has delivered an earnings beat of 38.4%, on average, in the trailing four quarters.

Charter Communications CHTR currently has an Earnings ESP of +0.60% and a Zacks Rank #3. CHTR is anticipated to register top-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $13.2 billion, indicating an improvement of 5.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Charter Communications’ bottom line has moved down 0.9% in the past 30 days to $6.52 per share. However, the metric reflects growth of 58.6% from $4.11 reported in the year-ago quarter. CHTR has delivered an earnings beat of 12%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Pool Corporation (POOL) : Free Stock Analysis Report

Whirlpool Corporation (WHR) : Free Stock Analysis Report

Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report

Charter Communications, Inc. (CHTR) : Free Stock Analysis Report

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