Whirlpool Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Whirlpool (NYSE:WHR) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. 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 estimate of analysts is for profit of $2.25 per share, a rise of more than sevenfold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $2.26. Between one and three months ago, the average estimate moved down. It has been unchanged at $2.25 during the last month. Analysts are projecting profit to rise by 6.4% compared to last year’s $7.01.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported net income of $1.80 per share against a mean estimate of profit of $1.60 per share. In the second quarter, it missed forecasts by 9 cents.

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A Look Back: In the third quarter, profit fell 58.2% to $74 million (94 cents a share) from $177 million ($2.27 a share) the year earlier, but exceeded analyst expectations. Revenue fell 2.8% to $4.5 billion from $4.63 billion.

Here’s how Whirlpool traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

whr

Analyst Ratings: With three analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.04 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 2.6% in the fourth quarter of the last fiscal year, 1.2% in first quarter and 4.6% in the second quarter and then fell again in the third quarter.

Wall St. Revenue Expectations: Analysts predict a decline of 0.6% in revenue from the year-earlier quarter to $4.88 billion.

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