Free Post Earnings Research Report: Whirlpool Reported Lower Than Expected Results

LONDON, UK / ACCESSWIRE / July 30, 2018 /

If you want access to our free earnings report on Whirlpool Corp. (NYSE: WHR), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=WHR. The Company reported its second quarter fiscal 2018 operating and financial results on July 24, 2018. The appliance maker provided its guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Earnings Highlights and Summary

For the second quarter of the fiscal year 2018, Whirlpool's net sales were $5.1 billion compared to $5.3 billion in Q2 2017. The Company's revenue numbers lagged analysts' estimates of $5.30 billion.

During Q2 2018, Whirlpool's earnings before interest and taxes (EBIT) were negative $562 million, or 10.9% of sales, compared to positive $251 million, or 4.7% of sales, in Q2 2017. On a GAAP basis, the Company's results were negatively impacted by approximately $860 million due to an asset impairment charge related to the Europe, Middle-East, and Africa (EMEA) region and a preliminary settlement with the FCA.

Whirlpool's ongoing EBIT were $343 million, or 6.7% of sales, in the reported quarter compared to $350 million, or 6.5% of sales, in the prior year's same period. On a GAAP and ongoing basis, Whirlpool's EBIT margin was favorably impacted by product price/mix and restructuring benefits, which more than offset unit volume declines, raw material inflation, and unfavorable foreign currency impacts.

Whirlpool reported a net loss of $657 million, or $9.50 loss per diluted share, in Q2 2018 compared to net earnings of $189 million, or $2.52 per diluted share, in Q2 2017. The Company's ongoing earnings were $3.20 per diluted share in the reported quarter versus $3.35 per diluted share in the prior year's comparable period. Whirlpool's earnings came in short of Wall Street's estimates of $3.43 per share.

Regional Review

During Q2 2018, Whirlpool North America reported net sales of $2.8 billion compared to $2.8 billion in Q2 2017. The region reported EBIT of $331 million, or 11.9% of sales, in the reported quarter compared to $336 million, or 11.9% of sales, in the year ago corresponding period. For the reported quarter, the region recorded a favorable impact of product price/mix, which was offset by unit volume declines, raw material inflation, and higher freight costs.

For Q2 2018, Whirlpool EMEA reported net sales of $1.1 billion compared to $1.2 billion in Q2 2017. The region reported EBIT of negative $25 million, or 2.3% of sales, in the reported quarter compared to negative $2 million, or 0.2% of sales, in the prior year's same period. For Q2 2018, the region's favorable impacts of product price/mix and restructuring benefits were more than offset by unit volume declines, raw material inflation, and unfavorable foreign currency impacts.

Whirlpool Latin America reported net sales of $852 million in Q2 2018 compared to $986 million in Q2 2017. The region recorded EBIT of $33 million, or 3.8% of sales, in the reported quarter versus $57 million, or 5.8% of sales, in the year earlier comparable quarter. During Q2 2018, the region's sales and EBIT were negatively impacted by the trucker strike in Brazil.

During Q2 2018, Whirlpool Asia reported net sales of $428 million compared to $373 million in Q2 2017. The region generated EBIT of $43 million, or 10.1% of sales, in the reported quarter compared to negative $30 million, or 8.0% of sales, in the year earlier corresponding quarter. The region's ongoing EBIT totaled $43 million, or 10.1% of sales, in Q2 2018 compared to $10 million, or 2.5% of sales, in Q2 2017.

Cash Matters

During Q2 2018, Whirlpool obtained financing in an amount approximately equal to anticipated proceeds from the sale of its Embraco compressor business, and used it to accelerate share repurchases through a ‘modified Dutch Auction' tender offer. The Company repurchased 6,269,591 shares at a price of $159.50 per share, for an aggregate cost of approximately $1 billion.

For the six months ended June 30, 2018, Whirlpool reported cash used in operating activities of negative $584 million compared to negative $191 million in the prior year's same period. The Company reported a negative free cash flow of $725 million in H1 2018 compared to negative $356 million in H1 2017; primarily driven by volume-related working capital timing, in addition to the timing of certain payments and accruals, compared to the prior year.

Outlook

For the full fiscal year 2018, Whirlpool is forecasting GAAP earnings per diluted share to be in the range of $0.15 to $0.75, and ongoing earnings per diluted share to be in the band of $14.20 to $14.80. For FY18, the Company expects to generate cash from operating activities of approximately $1.5 billion and free cash flow of approximately $850 million.

Stock Performance Snapshot

July 27, 2018 - At Friday's closing bell, Whirlpool's stock was slightly up 0.20%, ending the trading session at $127.89.

Volume traded for the day: 1.78 million shares, which was above the 3-month average volume of 1.77 million shares.

After last Friday's close, Whirlpool's market cap was at $8.79 billion.

The stock has a dividend yield of 3.60%.

The stock is part of the Consumer Goods sector, categorized under the Appliances industry.

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