Analyst Downgrades Whirlpool After '09 Guidance

HARTFORD, Conn. (AP) — Shares of Whirlpool Corp. fell Tuesday, a day after the world's largest manufacturer of stoves, refrigerators and other major home appliances said first-quarter profit fell 28 percent.

Analyst Sam Darkatsh of Raymond James & Associates Inc. downgraded the Benton Harbor, Mich., company Tuesday to "market Perform" from "outperform."

He cited Whirlpool's stock's "recent and rapid approach" to his $45 price target and 2009 earnings guidance "that suggests operating results well below prior expectations."

Whirlpool maintained its outlook Monday for a 2009 profit of $3 to $4 per share, above analysts' expectations for full-year earnings of $2.78 per share.

However, Darkatsh said the guidance is helped by about $1 per share in "non-operating items, decreasing earnings quality in our view."

"While we still maintain that the long-term earnings power exceeds $10 per share, we believe that the recent steep rise in the shares, combined with still-deteriorating demand trends, present a more balanced risk-reward ratio at present," he said.