Earnings Beat: Whirlpool Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Whirlpool Corporation (NYSE:WHR) just released its quarterly report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.7% to hit US$4.0b. Statutory earnings per share (EPS) came in at US$1.29, some 5.1% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Whirlpool's nine analysts currently expect revenues in 2026 to be US$15.6b, approximately in line with the last 12 months. Whirlpool is also expected to turn profitable, with statutory earnings of US$6.68 per share. Before this earnings report, the analysts had been forecasting revenues of US$15.4b and earnings per share (EPS) of US$7.31 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Whirlpool

It might be a surprise to learn that the consensus price target fell 6.8% to US$86.78, with the analysts clearly linking lower forecast earnings to the performance of the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Whirlpool analyst has a price target of US$145 per share, while the most pessimistic values it at US$51.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would also point out that the forecast 0.04% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 5.6% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.9% per year. So while a broad number of companies are forecast to grow, unfortunately Whirlpool is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Whirlpool. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Whirlpool's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Whirlpool's future valuation.

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 forecasts for Whirlpool going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Whirlpool , and understanding them should be part of your investment process.

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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.