Zacks Investment Research Downgrades Whirlpool (WHR) to Sell
Whirlpool (NYSE:WHR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.
According to Zacks, “Whirlpool underperformed the industry in a month owing to dismal top and bottom line trends. Including second-quarter 2018, the company delivered negative earnings surprise in seven of the last eight quarters and five consecutive sales misses. Also, top and bottom lines declined year over year due to higher raw material costs, lower sales volumes and currency headwinds. Notably, the increased steel tariffs due to the global trade war are hurting Whirlpool as steel is its main raw material. Additionally, a struggling EMEA segment due to charges booked in the European operations and an antitrust settlement in France weighed on the results. Management lowered its GAAP and adjusted earnings view for 2018. Nevertheless, the company’s progress on global cost-based price increases and fixed cost reduction initiatives, along with robust product pipeline and innovations remain encouraging. Estimates have been stable lately.”
WHR has been the subject of several other reports. Goldman Sachs Group assumed coverage on shares of Whirlpool in a research report on Tuesday, October 2nd. They set a “sell” rating and a $107.00 price objective for the company. JPMorgan Chase & Co. cut shares of Whirlpool from an “overweight” rating to a “neutral” rating in a research report on Tuesday. Longbow Research cut shares of Whirlpool from a “buy” rating to a “neutral” rating and set a $185.00 price objective for the company. in a research report on Tuesday, July 24th. Cleveland Research reiterated a “hold” rating on shares of Whirlpool in a research report on Wednesday. Finally, Credit Suisse Group set a $175.00 price objective on shares of Whirlpool and gave the stock a “buy” rating in a research report on Tuesday, July 24th. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $171.88.
Whirlpool (NYSE:WHR) last announced its quarterly earnings results on Monday, July 23rd. The company reported $3.20 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $3.63 by ($0.43). Whirlpool had a negative net margin of 2.62% and a positive return on equity of 20.73%. The business had revenue of $5.14 billion during the quarter, compared to analyst estimates of $5.29 billion. During the same quarter last year, the company posted $3.35 earnings per share. The company’s revenue was down 3.9% compared to the same quarter last year. Analysts predict that Whirlpool will post 14.2 earnings per share for the current fiscal year.
In other news, Director Diane M. Dietz acquired 1,600 shares of the firm’s stock in a transaction dated Thursday, July 26th. The stock was bought at an average cost of $124.26 per share, for a total transaction of $198,816.00. Following the completion of the transaction, the director now directly owns 8,339 shares in the company, valued at approximately $1,036,204.14. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 2.83% of the company’s stock.
A number of large investors have recently bought and sold shares of the business. Nomura Asset Management Co. Ltd. grew its holdings in Whirlpool by 3.0% in the first quarter. Nomura Asset Management Co. Ltd. now owns 11,405 shares of the company’s stock worth $1,747,000 after purchasing an additional 328 shares during the period. Assetmark Inc. grew its holdings in Whirlpool by 88.1% in the first quarter. Assetmark Inc. now owns 713 shares of the company’s stock worth $109,000 after purchasing an additional 334 shares during the period. Adviser Investments LLC grew its holdings in Whirlpool by 1.7% in the second quarter. Adviser Investments LLC now owns 24,084 shares of the company’s stock worth $3,522,000 after purchasing an additional 404 shares during the period. Advisors Asset Management Inc. grew its holdings in Whirlpool by 6.5% in the second quarter. Advisors Asset Management Inc. now owns 6,859 shares of the company’s stock worth $1,003,000 after purchasing an additional 416 shares during the period. Finally, Tyers Asset Management LLC grew its holdings in Whirlpool by 1.8% in the second quarter. Tyers Asset Management LLC now owns 24,046 shares of the company’s stock worth $3,516,000 after purchasing an additional 418 shares during the period. Institutional investors and hedge funds own 93.15% of the company’s stock.
Whirlpool Company Profile
Whirlpool Corporation manufactures and markets home appliances and related products. It operates through four segments: North America; Europe, Middle East and Africa; Latin America; and Asia. The company's principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other small domestic appliances.
See Also: Intrinsic Value
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