Whirlpool Corp Earnings Cheat Sheet: Profit Up

S&P 500 (NYSE:SPY) component Whirlpool Corporation (NYSE:WHR) reported its results for the third quarter. Whirlpool manufactures and markets appliances and products for home use. It makes washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, trash compactors and air purifiers.

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Whirlpool Earnings Cheat Sheet for the Third Quarter

Results: Net income for the appliances company rose to $177 million ($2.27 per share) vs. $79 million ($1.02 per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 2.3% to $4.63 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: WHR reported adjusted net income of $2.35 per share. By that measure, the company fell short of mean estimate of $2.68 per share. It fell short of the average revenue estimate of $4.76 billion.

Quoting Management: “During the quarter, we experienced weaker than expected global industry demand and elevated material costs,” said Jeff M. Fettig, Whirlpool Corporation chairman and chief executive officer. “Consumers continue to show strong preference for our unmatched global brand portfolio and new product innovations, and we are beginning to see the benefits from previously announced price increases. However, our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs.”

Key Stats:

Gross margin shrank two percentage points to 12.4%. The contraction appeared to be driven by increased costs, which rose 4.7% from the year earlier quarter while revenue rose 2.3%.

Revenue has risen the past four quarters. Revenue increased 4.3% to $4.73 billion in the second quarter. The figure rose 3% in the first quarter from the year earlier and climbed 3.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after being in line with expecations the quarter before with net income of $2.76.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $3.31 per share, down from $3.70 ninety days ago. The average estimate for the fiscal year is $10.71 per share, down from $11.68 ninety days ago.

Competitors to Watch: General Electric (NYSE:GE), Siemens (NYSE:SI), Indesit Company SpA (NYSE:IND).

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(Source: Xignite Financials)