JP Morgan Adjust Estimates On Whirlpool After Lackluster Quarter

JP Morgan has published a research report on Whirlpool Corporation WHR after the company reported 4Q earnings that came in below estimates, despite benefiting from tax benefit rates and asset sales. In the report, JP Morgan writes "Against our estimate, downside was led by a lower than expected N. America margin, at 1.7% vs. our 4.6%E, representing $1.05/share, while higher than expected corporate expense represented $0.17/share. This was only partially offset by higher than expected Latin America revenue and lower than expected income tax, representing $0.52/share and $0.51/share of upside, respectively. Also, WHR issued 2011 EPS guidance of $12.00-$13.00, vs. our $7.80E and the Street's $8.71, which we note not only includes roughly $4.00/share from a tax benefit due to the recent energy tax credit legislation passed in December, but also an expectation to solidly achieve price increases in 2011, which we note is in contrast to the last two quarters' negative price/mix, and may be difficult to implement, in our view, given a still competitive environment and a more muted demand outlook." JP Morgan maintains its Neutral rating and $90 price target. Whirlpool Corporation closed yesterday at $83.60.