BENTON HARBOR, Mich. - Whirlpool Corporation (NYSE: NYSE:WHR) reported a positive start to the year with first-quarter earnings and revenue surpassing Wall Street expectations, prompting a 1.6% increase in its stock price. The company announced Q1 adjusted EPS of $1.78, which was $0.08 higher than the analyst estimate of $1.70. Revenue for the quarter reached $4.49 billion, exceeding the consensus estimate of $4.44 billion and reflecting a strong performance despite a challenging macro environment in North America.
Compared to the same period last year, Whirlpool's net sales saw a decrease of 3.4%, with the decline attributed to unfavorable price/mix and industry decline. The company's GAAP net earnings margin deteriorated to (5.8)% from (3.9)% of the prior year, impacted by a non-cash charge related to the Europe transaction.
Looking ahead, Whirlpool provided an optimistic full-year guidance for 2024, with expected EPS in the range of $13.00 to $15.00, compared to the analyst consensus of $13.24. The company's revenue forecast for the year stands at $16.9 billion, slightly above the consensus estimate of $16.84 billion.
Marc Bitzer, Chairman and CEO, expressed confidence in the company's direction, stating, "The closing of the Europe transaction marks a critical portfolio transformation milestone. We saw strong performance in Global SDA as well as our international businesses, and announced promotional program price increases in MDA North America consistent with the value of our products and brands to address sticky inflation."
Whirlpool's financial health remains robust, as evidenced by the declared $1.75 dividend per share for both Q1 and Q2 and the repayment of a $500 million term loan in April. The company's strategic moves, including the recent Europe transaction expected to deliver significant future cash flows, and a focus on cost performance, have positioned it well for the remainder of the year.
Investors appear to be responding positively to Whirlpool's earnings beat and encouraging guidance, as reflected in the modest uptick in the company's share price following the announcement.
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