Whirlpool (NYSE:WHR) Shares Gap Down After Earnings Miss

Key Points

• Whirlpool's shares experienced a significant decline, opening at $85.51 after closing at $97.91, following a disappointing earnings report that missed analysts' estimates.
• The company's earnings per share (EPS) for the quarter was $1.34, falling short of the $1.54 consensus, with revenue down 5.4% year-over-year at $3.77 billion.
• Recent analyst ratings for Whirlpool have been mixed, with Longbow Research upgrading the stock to a "buy" rating but several others, including Bank of America, downgrading it with price targets significantly lowered.

Whirlpool Corporation (NYSE:WHR - Get Free Report)'s share price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $97.91, but opened at $85.51. Whirlpool shares last traded at $86.65, with a volume of 3,001,749 shares trading hands.

The company reported $1.34 earnings per share for the quarter, missing the consensus estimate of $1.54 by ($0.20). The company had revenue of $3.77 billion for the quarter, compared to the consensus estimate of $3.88 billion. Whirlpool had a positive return on equity of 20.81% and a negative net margin of 0.95%. The company's revenue was down 5.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.39 earnings per share.

Analysts Set New Price Targets

Several research analysts have commented on WHR shares. Royal Bank Of Canada dropped their price objective on shares of Whirlpool from $65.00 to $63.00 and set an "underperform" rating for the company in a research note on Wednesday. Longbow Research raised shares of Whirlpool from a "neutral" rating to a "buy" rating and set a $145.00 price target for the company in a research note on Monday, June 30th. Bank of America reiterated an "underperform" rating and set a $70.00 price target (down from $100.00) on shares of Whirlpool in a report on Tuesday. Wall Street Zen downgraded shares of Whirlpool from a "hold" rating to a "sell" rating in a research note on Saturday. Finally, JPMorgan Chase & Co. cut their target price on Whirlpool from $109.00 to $89.00 and set a "neutral" rating on the stock in a research note on Monday, April 28th. Three equities research analysts have rated the stock with a sell rating, one has issued a hold rating and two have given a buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $101.00.

Institutional Investors Weigh In On Whirlpool

Large investors have recently added to or reduced their stakes in the stock. Nuveen LLC bought a new position in Whirlpool in the first quarter worth approximately $82,461,000. FMR LLC lifted its holdings in shares of Whirlpool by 57.3% in the 4th quarter. FMR LLC now owns 1,808,744 shares of the company's stock worth $207,065,000 after buying an additional 659,014 shares during the period. Norges Bank bought a new position in shares of Whirlpool during the 4th quarter worth $73,468,000. Causeway Capital Management LLC purchased a new position in shares of Whirlpool during the first quarter valued at $32,788,000. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Whirlpool by 25.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,723,612 shares of the company's stock valued at $155,343,000 after acquiring an additional 350,397 shares in the last quarter. 90.78% of the stock is owned by hedge funds and other institutional investors.

Whirlpool Trading Down 1.0%

The company has a quick ratio of 0.40, a current ratio of 0.85 and a debt-to-equity ratio of 2.39. The stock's 50 day moving average is $93.08 and its two-hundred day moving average is $94.49. The company has a market capitalization of $4.67 billion, a PE ratio of -31.66 and a beta of 1.25.

About Whirlpool

Whirlpool Corporation manufactures and markets home appliances and related products and services in the North America, Europe, the Middle East, Africa, Latin America, and Asia. The company's principal products include refrigerators, freezers, ice makers, and refrigerator water filters; laundry appliances, and commercial laundry products and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers.