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Whirlpool Increases Profit

- By Alberto Abaterusso

In addition to Caterpillar Inc. (CAT), whose shares tumbled 9.13% to $124.37 following the earnings announcement for the last trimester of 2018, several other large caps released earnings on Monday.

The Benton Harbor, Michigan-based home appliances producer Whirlpool (WHR) beat expectations on non-GAAP earnings per share by 52 cents, issuing non-GAAP earnings per share of $4.75. The company missed expectations on GAAP earnings per share by 62 cents, posting GAAP earnings per share of $2.64.


Driven by price increases, the non-GAAP profit grew 15.9% from the prior-year quarter while GAAP profit represented a positive turnaround from the prior-year quarter loss of $3.74.

Revenue came to $5.66 billion, reflecting a 0.7% decrease from the prior-year quarter. Whirlpool missed expectations on fourth-quarter revenue by $100 million.

For full-year 2019, Whirlpool expects non-GAAP earnings of $14.00 to $15.00 per share versus previous guidance of $14.20 to $14.80 and versus consensus of $15.99. Whirlpool also anticipates operating cash flow of approximately $1.4 billion to $1.5 billion and free cash flow of approximately $800 million to $900 million for full-year 2019.

The share price was trading around $124.5 at close Monday and fell 32% over the past year. The market capitalization is $7.94 billion, the 52-week range is $99.40 to $184.50, and the share price at close Monday is below the 200-day SMA line but above the 100- and 50-day SMA lines.

The stock has a price-book ratio of 3.38 versus an industry median of 1.54 and a price-sales ratio of 0.41 versus an industry median of 0.96.

The forward dividend yield is 3.68% compared to an industry median of 2.49%.

The Irving, Texas-based chemicals producer Celanese Corp. (CE) missed expectations on both non-GAAP and GAAP earnings for the last quarter of 2018. The company issued non-GAAP earnings per share of $2.38 versus consensus of $2.4 and issued GAAP earnings per share of 73 cents versus consensus for $2.47. The revenue increased 6.3% year-over-year to $1.69 billion, but the company missed expectations by $30 million.

Driven by price and volume expansion, net sales from the engineered materials segment rose 7% year-over-year to $622 million. Net sales from the acetyl chain segment jumped 5% year-over-year to $936 million.

For full-year 2019, the company is guiding lower earnings of approximately $10.50 per share compared to consensus of $11.05 per share. This is because the company forecasts that the economic weakness seen in Europe and Asia during the last quarter of 2018 will also affect the first and second quarters of 2019. However, it raised its prediction for earnings for full-year 2020 to $12 per share as a result of stronger business models and growth from both acquisitions and organic investment projects.

The share price of Celanese Corp. declined 11% for the 52 weeks through Jan. 28 and was trading at around $97.7 at close Monday. This share price is below the 100- and 200-day SMA lines but above the 50-SMA line. Also, the share price at close Monday is 17.8% above the 52-week low of $82.91 and 22.1% off the 52-week high of $119.29. The market capitalization is $13.06 billion.

The price-book ratio is 3.69 versus an industry median of 1.83. The price-sales ratio is 1.88. The price-earnings ratio is 10.14 versus an industry median of 18.54.

Celanese Corp. has paid a dividend since 2005. The company is distributing a 54-cent cash quarterly dividend per ordinary share for a forward dividend yield of 2.22%. The industry median is 2.05%.

Shares of the Tokyo-based financial services company ORIX Corp. (IX) fell 2.99% to $75.89 on Monday on the New York Stock Exchange following the release of results for the period of nine months through Dec. 31, 2018. The net income was 236.2 billion yen on revenue of 1.796 tillion yen. The top line declined 18.2% year-over-year. The return on equity ratio declined 170 basis points to 11.5%.

By segment, net profit from corporate financial services decreased about 47% to 19.8 billion yen. The profit from maintenance leasing declined 2% to 30.4 billion yen. The profit from the real estate segment increased approximately 6% to 55.4 billion yen. Profit from investment and operation fell 51% to 30.4 billion yen. The profit from retail rose 5% to 66.2 billion yen. The profit from overseas business decreased approximately 13% to 95.6 billion yen.

As of Dec. 31, the Japanese financial services corporation had total assets valued at 12.12 tillion yen, which are shared between segment assets of 9.91 trillion yen and shareholders' equity of 2.82 trillion yen. The shareholders' equity ratio of 23.2% for the mentioned period is unchanged on a year-over-year basis.

The share price is now trading under the 200-, 100- and 50-day SMA lines following a 22% decline for the past year through Jan. 28. The market capitalization is $19.4 billion. The 52-week range is $67 to $98.49.

The stock has a price-book ratio of 0.75 versus an industry median of 1.19. The price-sales ratio is 1.04 versus an industry median of 3.46, and the price-earnings ratio is 7.02 versus an industry median of 16.14.

ORIX Corp. has distributed dividends since 1999. The forward dividend yield is 3.39% compared to an industry median of 2.72%.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.