S&P 500 (NYSE:SPY) component Whirlpool (NYSE:WHR) will unveil its latest earnings on Tuesday, July 24, 2012. Whirlpool manufactures and markets appliances and products for home use. It makes washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, trash compactors and air purifiers.
Whirlpool Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.60 per share, a decline of 42% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.57. Between one and three months ago, the average estimate moved up. It has dropped from $1.64 during the last month. For the year, analysts are projecting profit of $6.44 per share, a decline of 14% from last year.
Past Earnings Performance: Last quarter, the company topped expectations by 29 cents, coming in at net income of $1.41 per share versus a mean estimate of profit of $1.12 per share. This followed two straight quarters of missing estimates.
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A Look Back: In the first quarter, profit fell 45.6% to $92 million ($1.17 a share) from $169 million ($2.17 a share) the year earlier, but exceeded analyst expectations. Revenue fell 1.2% to $4.35 billion from $4.4 billion.
Stock Price Performance: Between May 21, 2012 and July 18, 2012, the stock price had risen $6.48 (11.1%), from $58.56 to $65.04. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 5, 2012, when shares rose for eight straight days, increasing 15.3% (+$8.40) over that span. It saw one of its worst periods between July 20, 2011 and August 2, 2011 when shares fell for 10 straight days, dropping 13.9% (-$10.51) over that span.
Wall St. Revenue Expectations: Analysts are projecting a decline of 2.1% in revenue from the year-earlier quarter to $4.63 billion.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 2.6% in the fourth quarter of the last fiscal year and dropped again in the first quarter.
Analyst Ratings: There are mostly holds on the stock with three of four analysts surveyed giving that rating.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.96 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 1.02 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.4% to $6.51 billion while assets decreased 2.3% to $6.28 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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