Whirlpool Corporation Just Beat EPS By 83%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Whirlpool Corporation (NYSE:WHR) released its quarterly result to the market. The early response was not positive, with shares down 5.8% to US$99.53 in the past week. Revenues were US$4.0b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$3.96, an impressive 83% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Whirlpool

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Following the recent earnings report, the consensus from nine analysts covering Whirlpool is for revenues of US$16.8b in 2024. This implies a definite 9.1% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to dive 68% to US$3.11 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$16.8b and earnings per share (EPS) of US$5.25 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

The consensus price target held steady at US$111, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Whirlpool, with the most bullish analyst valuing it at US$137 and the most bearish at US$76.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that Whirlpool's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 17% to the end of 2024. This tops off a historical decline of 1.2% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.9% annually. So while a broad number of companies are forecast to grow, unfortunately Whirlpool is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Whirlpool's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$111, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Whirlpool analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Whirlpool (1 shouldn't be ignored!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com