Whirlpool Corp Earnings: Exceeds Forecasts with Boost of Profit Rise

S&P 500 (NYSE:SPY) component Whirlpool Corporation (NYSE:WHR) reported net income above Wall Street’s expectations for the fourth quarter. 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.

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Whirlpool Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Whirlpool Corporation rose to $205 million ($2.62 per share) vs. $171 million ($2.19 per share) in the same quarter a year earlier. This marks a rise of 19.9% from the year earlier quarter.

Revenue: Fell 2.8% to $4.9 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: WHR beat the mean analyst estimate of $2.06 per share. Analysts were expecting revenue of $4.98 billion.

Quoting Management: “As we enter 2012, we are executing strong actions to continue to improve operating margins through our cost and capacity reduction initiatives, ongoing productivity programs and previously announced price increases,” said Jeff M. Fettig, Whirlpool Corporation chairman and chief executive officer. “We exit 2011 with improving product price/mix, significantly lower inventory levels and strong new product innovation. These initiatives are the key drivers to improving our operating margins throughout 2012.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter, which saw revenue rise 4.3%.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of $2.35 versus a mean estimate of net income of $2.68 per share.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from $1.41 per share to $1.08, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $9.21 per share, down from $10.57 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com