Whirlpool (WHR) reported Q1 2022 results that both declined from the same quarter the previous year and missed the consensus estimate.
However, WHR stock still rose nearly 3% on April 25, following the earnings report. Whirlpool is an American multinational maker of home appliances.
Q1 Numbers at a Glance
Revenue fell 8.2% year-over-year to $4.92 billion, and missed the consensus estimate of $5.32 billion.
Adjusted EPS of $5.31 declined from $7.20 in the same quarter the previous year, and fell short of the consensus estimate of $5.40. The Russia-Ukraine war weighed on Whirlpool’s performance, especially its international business.
Why Whirlpool Stock Jumped
Investors welcomed Whirlpool’s announcement that it has initiated a strategic review of its EMEA business, which recorded a 7.4% year-over-year decline in sales.
The management is considering all options and expects to conclude the review by the end of Q3 2022. Whirlpool wants to focus on high-growth and high-margin businesses.
The boost to Whirlpool’s share repurchase program also struck a chord with investors. The company added $2 billion to its share repurchase plan, ending Q1 with $2.9 billion remaining on the program.
CEO’s Comment
“We have delivered four consecutive years of all-time record results and we have a very strong balance sheet,” said Whirlpool CEO Marc Bitzer.
The stock has a Hold consensus rating based on two Buys, two Holds, and two Sells. The average Whirlpool price target of $198 implies 5.9% upside potential from current levels.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 100% Bullish on WHR, compared to a sector average of 68%.
Key Takeaway for Investors
The COVID-19 pandemic fueled demand for home appliances as more people stayed at home because of the lockdowns.
Taking advantage of the pandemic-driven demand, Whirlpool has built a strong balance sheet that it can now tap to position itself better for the future as pandemic benefits wane.
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