Maytag First-Quarter Sales Increase 20%, Stock Still Down

The appliance maker posts a 20% sales increase and beats analyst estimates.

Author:: Michael Dunn
Publish date:: Apr 16, 2002 8:54 AM EDT

Maytag

(MYG)

posted a 20% sales increase and earnings per share ahead of analyst estimates.

The appliance manufacturer said its first-quarter sales rose 20% to $1.178 billion from $978.4 million in the year-ago period, due primarily to the acquisition of Amana and strong sales of higher-end appliances.

Net income from continuing operations for the quarter was $58.1 million, or 75 cents a share, up from $36.6 million, or 46 cents a share, last year. Analysts polled by Thomson Financial/First Call had been expecting 71 cents a share.

Using generally accepted accounting principles, the company's net income, including discontinued operations, was $56.8 million, or 73 cents a share, down from $76.3 million, or 96 cents a share, in the year-ago period.

For the rest of the year, Maytag said it expects to see the major-appliance industry's growth a little subdued, but it still sees second-quarter EPS flat with the first quarter, well above the First Call estimate of 60 cents a share. For the full year, the company expects sales to grow 15% and EPS of about $2.80, also well above the First Call estimate of $2.52.

Shares of Maytag were recently trading down 4.14% to $45.62 despite its news, after closing at $47.59 Monday.