Whirlpool Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Whirlpool (NYSE:WHR) will unveil its latest earnings on Tuesday, October 23, 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 31.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.56. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.60 during the last month. For the year, analysts are projecting profit of $6.48 per share, a decline of 13.5% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported net income of $1.55 per share against a mean estimate of $1.64. Two quarters ago, it beat expectations by 29 cents with profit of $1.41.

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A Look Back: In the second quarter, the company swung to a profit of $113 million ($1.43 a share) from a loss of $161 million ($2.10) a year earlier, but missed analyst estimates. Revenue fell 4.6% to $4.51 billion from $4.73 billion.

Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose $24.86 (39.9%), from $62.25 to $87.11. The stock price saw one of its best stretches over the last year between September 5, 2012 and September 14, 2012, when shares rose for eight straight days, increasing 10.8% (+$8.09) over that span. It saw one of its worst periods between April 12, 2012 and April 20, 2012 when shares fell for seven straight days, dropping 10.8% (-$7.80) over that span.

Analyst Ratings: With two analysts rating the stock as a buy, none rating it as a sell and two rating it as a hold, there are indications of a bullish outlook.

Key Stats:

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

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.

Wall St. Revenue Expectations: On average, analysts predict $4.57 billion in revenue this quarter, a decline of 1.1% from the year-ago quarter. Analysts are forecasting total revenue of $18.44 billion for the year, a decline of 1.2% from last year’s revenue of $18.67 billion.

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

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