Whirlpool Corporation’s earnings for the second quarter of 2024 are out and it doesn’t appear to be good news for the appliance manufacturer. Company officials have lowered the earnings forecast for the year based on weaker than expected major appliance purchases by consumers.
Company leaders revised the earnings forecast to approximately $12 per share this year, down from the previously stated $13 to $15 per share.
Even so, Whirlpool officials are maintaining their full-year revenue estimate of $16.9 billion.
“Our solid Q2 results and actions put us firmly on track towards expanding our margins sequentially throughout 2024,” said Marc Bitzer, “setting up our business well for the eventual recovery of the U.S. housing market.”
Whirlpool Corporation’s largest market is North America, where sales fell 5.7%. Some good news came from the company’s Small Domestic Appliance sales, climbing 11% year over year.
The stock finished the normal trading day down $2.61 at $98.75 per share — well off its 52-week high of $148.50 per share.
The company highlighted the following in their initial earnings report:
— Sequential margin expansion globally and in MDA North America, driven by MDA North America promotional pricing actions
— Solid performance in Small Domestic Appliances (SDA) Global, Major Domestic Appliances (MDA) Latin America, and MDA Asia, all delivering double-digit net sales growth in the quarter
— Continued progress toward cost take out goals; on track to deliver $300–$400 million in 2024
— Q2 GAAP net earnings margin of 5.5%; GAAP earnings per diluted share of $3.96
— Ongoing (non-GAAP) EBIT margin(1) of 5.3%; ongoing earnings per diluted share(2) of $2.39
— Expect full-year GAAP earnings per diluted share of approximately $3.00, primarily impacted by the non-cash charge related to the Europe transaction
— Revised full-year ongoing earnings per diluted share to approximately $12.00, cash provided by operating activities to approximately $1.05 billion and free cash flow to approximately $500 million
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Additional information will be posted as the company hosts its earnings calls with investors on Thursday.
