2 Whirlpool Analysts Break Down Q2 Earnings

Whirlpool Corp. WHR posted a second-quarter earnings and sales beat Wednesday.

Here's what analysts from KeyBanc Capital Markets and Raymond James had to say after the print. 

KeyBanc's Take On Whirpool: Whirlpool managed to beat EPS expectations, posting $6.64 versus the bank’s $5.60 estimate, said analyst Kenneth Zener in a Thursday note.

This beat was supported by a surprisingly small change in raw material cost inflation and increased demand globally with the exception of Asia, said the analyst.

North American demand rose 10%, and EMEA and LatAm sales rose 49% and 76%, respectively, he said. 

Looking ahead, an increase in earnings projections is justified considering Whirlpool has consistently increased its earnings guidance since 2020’s fourth-quarter report, said Zener.

Furthermore, the company’s longer-term focus on margin sustainability in the midst of increasing demand “could be a multiyear tailwind as appliances are in the second year of increased monthly use,” said the KeyBanc analyst.

KeyBanc maintained a Sector Weight rating on Whirlpool. 

RayJay's Take On Whirlpool: Whirlpool also beat the Raymond James and consensus EPS estimate of $6, said analyst Sam Darkatsh. Despite the seemingly positive numbers, the company lost some of its domestic market share this quarter, said the analyst.

Some negative takeaways from this quarter’s report were that domestic market share loss was covered by “unsustainable trends” in LatAm, and much of the increase to FY21 EPS guidance comes from “lower non-cash D&A expense,” he said. 

Overall, the theme of Whirlpool’s second-quarter earnings was a “beat and raise” due to sales and margin growth globally, aside from Asia, said the Raymond James analyst.

Raymond James maintained a Market Perform rating on the stock. 

WHR Price Action: Whirlpool was down 0.87% at $215.38 at last check Thursday.