Why Whirlpool (WHR) Is Down Today

NEW YORK (TheStreet) -- Whirlpool (WHR) fell 7.1% to $131.61 Thursday following an earnings report that fell short on earnings but slightly beat on revenue.

In its fourth-quarter earnings report Whirlpool posted earnings of $2.97 a share, which is 7 cents lower than the Capital IQ Consensus Estimate of $3.04 a share for the quarter. With revenue rising 6.2% year over year to $5.09 billion, the appliance maker beat analyst estimates of $5.01 billion.

The company saw the biggest increase in sales in North America where sales increased by 9% to $2.7 billion in the fourth quarter. Sales in Asia, however, declined 9% to $177 million, primarily due to industry weakness in India.

Along with the earnings report Whirlpool issued guidance for 2014 that see earnings of between $12 and $12.50. The guidance is inline with analyst estimates of $12.26 a share for the full year.

TheStreet Ratings team rates WHIRLPOOL CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate WHIRLPOOL CORP (WHR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Powered by its strong earnings growth of 157.44% and other important driving factors, this stock has surged by 42.36% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WHR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • WHIRLPOOL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, WHIRLPOOL CORP increased its bottom line by earning $5.06 versus $4.96 in the prior year. This year, the market expects an improvement in earnings ($10.09 versus $5.06).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 164.9% when compared to the same quarter one year prior, rising from $74.00 million to $196.00 million.
  • WHR's revenue growth trails the industry average of 29.8%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • You can view the full analysis from the report here: WHR Ratings Report

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