Whirlpool Corporation Just Beat EPS By 83%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Whirlpool Corporation (NYSE:WHR) released its quarterly result to the market. The early response was not positive, with shares down 5.8% to US$99.53 in the past week. It looks like a credible result overall - although revenues of US$4.0b were what the analysts expected, Whirlpool surprised by delivering a (statutory) profit of US$3.96 per share, an impressive 83% above what was forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Whirlpool

Taking into account the latest results, the nine analysts covering Whirlpool provided consensus estimates of US$16.8b revenue in 2024, which would reflect a not inconsiderable 9.1% decline over the past 12 months. Statutory earnings per share are expected to dive 68% to US$3.11 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$16.8b and earnings per share (EPS) of US$5.25 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$111, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Whirlpool, with the most bullish analyst valuing it at US$137 and the most bearish at US$76.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Whirlpool shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. Over the past five years, revenues have declined around 1.2% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 17% decline in revenue until the end of 2024. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.9% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Whirlpool to suffer worse than the wider 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they 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. At Simply Wall St, we have a full range of analyst estimates for Whirlpool going out to 2026, and you can see them free on our platform here..

Even so, be aware that Whirlpool is showing 3 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com