Earnings Miss: Whirlpool of India Limited Missed EPS By 14% And Analysts Are Revising Their Forecasts

It's been a good week for Whirlpool of India Limited (NSE:WHIRLPOOL) shareholders, because the company has just released its latest annual results, and the shares gained 3.0% to ₹1,368. Revenues were in line with forecasts, at ₹68b, although statutory earnings per share came in 14% below what the analysts expected, at ₹17.26 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Whirlpool of India

Taking into account the latest results, the most recent consensus for Whirlpool of India from twin analysts is for revenues of ₹75.9b in 2024 which, if met, would be a meaningful 12% increase on its sales over the past 12 months. Statutory earnings per share are predicted to bounce 59% to ₹27.50. In the lead-up to this report, the analysts had been modelling revenues of ₹77.1b and earnings per share (EPS) of ₹35.35 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,419, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Whirlpool of India's past performance and to peers in the same industry. The analysts are definitely expecting Whirlpool of India's growth to accelerate, with the forecast 12% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Whirlpool of India is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Whirlpool of India going out as far as 2025, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Whirlpool of India that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.