Whirlpool Corporation (WHR) has seen international sales jump, especially in Brazil. WHR is trading with a forward P/E of 13.03.
Company Description
Whirlpool manufactures home appliances, such as refrigerators, dishwashers, cooking and countertop appliances. The company owns many iconic brands such as Maytag, KitchenAid, Jenn-Air, Amana, Bauknecht and Consul.
Whirlpool has 67 manufacturing and technology research centers worldwide.
Zacks Consensus Estimates Move Higher Ahead of Earnings Report
Whirlpool is scheduled to report fourth-quarter results on Feb 8. The fourth quarter Zacks Consensus Estimate is up 12 cents to $1.28 per share in the last month.
For the full year, one estimate was raised in the last week, pushing the 2009 Zacks Consensus to $4.42 from $4.41 per share.
Analysts expect a much better 2010 as earnings growth is projected at 43.06%. The 2010 Zacks Consensus Estimate rose 33 cents to $6.32 per share in the last month.
Whirlpool has a track record of surprising on earnings, having done so 3 out of the last 4 quarters by an average of 226.49%.
Cost Cutting Boosted the Third Quarter
On Oct 23, Whirlpool reported third-quarter results which surprised on estimates by 114.29%. The results were boosted by cost reduction and productivity initiatives which increased operating profit by 8%.
Total sales, however, fell 8% to $4.5 billion. Stripping out foreign exchange translation and sales would have declined 3%.
The Latin American and Asian segments propelled sales for the quarter. Brazilian appliance sales jumped 40% in local currency while Asian sales climbed 18% compared to a year ago. North America and Europe were still weak, however, as both saw sales declines of 9% and 17%, respectively.
Value Fundamentals
Whirlpool is a Zacks #1 Rank (strong buy) stock. It has a price-to-book ratio of 1.65. Whirlpool also pays a dividend, with a current yield of 2.10%.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.
