Shares of Whirlpool Corp. (WHR +0.43%) were down 15.3% as of 3:00 p.m. EDT Thursday after the home appliance leader lowered its full-year earnings guidance despite posting better-than-expected third-quarter results.
NYSE: WHR
Key Data Points
Whirlpool posted solid quarterly results...
Whirlpool's third-quarter 2023 revenue grew 3% year over year to $4.926 billion, translating to adjusted (non-GAAP) earnings of $5.45 per share. Analysts, on average, were only expecting earnings of $4.25 per share on revenue of $4.79 billion.
Whirlpool also confirmed that its pending deal to divest much of its European operations has been approved by the European Commission, Germany, Austria, and China and is expected to close by April 2024. Once complete, Whirlpool expects the transaction will help expand margins by around 150 basis points and increase annual free cash flow by $250 million.
...but reduced guidance left the market underwhelmed
In the meantime, however, Whirlpool reiterated its guidance for full-year 2023 revenue of $19.4 billion but also lowered its bottom-line outlook to call for full-year adjusted (non-GAAP) earnings of $16 per share (or to the lower end of its previous guidance range of $16 to $18 per share). During the subsequent conference call, management elaborated that Whirlpool continues to see demand weakness across key countries in Europe, as well as "soft consumer sentiment" impacting demand in Asia.
In any case, the market obviously isn't pleased with the dichotomy between Whirlpool's quarterly beat and its reduced earnings guidance. Until the company shows more tangible signs of an acceleration in growth and/or improved earnings power, it's hard to blame investors for taking a step back today.
