Whirlpool Shares Volatile Afterhours On Q1 Earnings Miss, Trimming FY22 Outlook

Whirlpool Corporation WHR reported a first-quarter sales decline of 8.2% year-over-year to $4.92 billion, missing the consensus of $5.32 billion. Adjusted EPS was $5.31, missing the consensus of $5.36.
Whirlpool states it recorded robust sales growth compared to pre-pandemic levels with healthy underlying consumer demand.
Sales by region: North America $2.79 billon (-8.3% Y/Y), EMEA $1.08 billion (-7.4% Y/Y), Latin America $760 million (+3.8% Y/Y), and Asia $285 million (-30.7% Y/Y).
The gross margin contracted by 413 bps to 17.3%, and the operating margin declined by 216 bps to 9.4%.
GAAP net earnings margin of 6.4%, down 170 bps, and adjusted EBIT margin of 9.4%, down 300 bps.
WHR’s cash used in operating activities for the quarter totaled $(328) million, compared to cash generated of $182 million in 1Q21. Free cash flow was $(415) million.
The company increased share repurchase authorization by $2 billion and repurchased $533 million of shares in the quarter.
WHR initiated a strategic review of its EMEA business; the assessment is expected to be concluded by Q3 2022.
FY22 Outlook: Whirlpool expects 2% to 3% net sales growth. It reduced the EPS outlook to $24 to $26 vs. a consensus of $26.32 (prior $27 to $29).
It now expects an operating cash flow of $1.95 billion, down from $2.2 billion prior, and a free cash flow of $1.25 billion, down from $1.5 billion.
Volatile trading: Whirlpool shares went down as much as 6% after reporting an earnings miss, only to recover all losses on the news of a strategic EMEA review.
Price Action: WHR shares are trading higher by 0.17% at $179.25 during the post-market session on Monday.
Photo via Wikimedia Commons

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