Electrolux (OTCMKTS:ELUXY) Shares Gap Down on Disappointing Earnings

Key Points

• Shares gapped down after disappointing results: Electrolux reported EPS of ($0.38) versus a $0.23 consensus (a $0.61 miss) and revenue of $3.19B vs. $3.40B expected, with the stock opening around $10.23 after a $11.44 close and last trading near $10.13.
• Analyst sentiment has weakened — multiple downgrades and restatements have left the consensus at five Holds and one Sell, with an overall average rating of "Reduce".
• Key fundamentals look strained: market cap ~$1.47B, P/E ~40, net margin 0.27% and debt-to-equity 3.57, and the shares are trading below both the 50-day ($14.21) and 200-day ($13.80) moving averages.

Shares of Electrolux AB (OTCMKTS:ELUXY - Get Free Report) gapped down prior to trading on Monday following a dissappointing earnings announcement. The stock had previously closed at $11.44, but opened at $10.2250. Electrolux shares last traded at $10.1280, with a volume of 812 shares traded.

The company reported ($0.38) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.61). Electrolux had a return on equity of 4.20% and a net margin of 0.27%.The company had revenue of $3.19 billion for the quarter, compared to analyst estimates of $3.40 billion.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on ELUXY shares. The Goldman Sachs Group upgraded Electrolux to a "hold" rating in a research note on Friday, March 27th. Rothschild & Co Redburn lowered Electrolux from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 20th. Citigroup restated a "neutral" rating on shares of Electrolux in a research note on Thursday, January 22nd. Zacks Research lowered Electrolux from a "strong-buy" rating to a "hold" rating in a research note on Thursday, April 2nd. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Electrolux in a research note on Monday, February 2nd. Five investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce".

Electrolux Stock Performance

The firm has a fifty day moving average of $14.21 and a 200-day moving average of $13.80. The firm has a market cap of $1.47 billion, a P/E ratio of 40.00 and a beta of 1.20. The company has a quick ratio of 0.66, a current ratio of 0.96 and a debt-to-equity ratio of 3.57.

Electrolux Company Profile

Electrolux AB, trading on the OTCMKTS as ELUXY, is a global leader in the design, manufacture and marketing of home and professional appliances. The company's product portfolio spans major and small household appliances, including refrigerators, freezers, cooking ranges, dishwashers, laundry machines and vacuum cleaners, as well as specialty equipment for food-service and hospitality markets. Electrolux is recognized for its emphasis on energy efficiency, innovative design and user-focused functionality across its brands.

Founded in Sweden in 1919 through the merger of Elektromekaniska AB and Lux AB, Electrolux has grown into one of the world's largest appliance makers.

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