Shares of
Whirlpool
were spiraling lower after revised earnings guidance from the appliance maker and margin concerns outweighed a quarterly earnings beat.
Whirlpool
(ticker: WHR) posted third-quarter adjusted earnings on Wednesday of $5.45 a share, well ahead of estimates of $4.27, according to FactSet. Net sales were $4.93 billion, above Wall Street’s call for $4.79 billion, and rising from the year-ago quarter, “driven by North America share gains and industry strength, partially offset by normalizing promotional environment,” the company said in a press release.
The home appliances company also reaffirmed its full-year net sales guidance of $19.4 billion but revised its adjusted earnings forecast to $16 a share from a prior range of $16 to $18.
Raymond James analysts Sam Darkatsh and Joshua Wilson, who rate shares at Market Perform, weighed in on the earnings report.
“
Whirlpool’s
headline 3Q EPS meaningfully benefited from tax, while price/mix headwinds and lower net cost benefits drove margin below expectations,” they wrote in a report Wednesday after the earnings were released. “4Q appears to be impacted by similar pressures and implied 4Q EPS guidance missed.”
Shares were down 14% to $107.52, putting them on pace for their largest percent decrease since March 16, 2020, when they dropped 20%, according to Dow Jones Market Data.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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