Whirlpool's Q4 Earnings Coming Up: Buy Now or Stay Cautious?

Core Insights - Whirlpool Corporation (WHR) is expected to report fourth-quarter 2025 results on January 28, 2026, with projected year-over-year sales growth despite a significant decline in earnings per share [2][3]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is $4.29 billion, reflecting a 3.7% increase from the previous year [3]. - The consensus estimate for quarterly earnings is stable at $1.50 per share, indicating a 67.2% decrease compared to the same quarter last year [3]. - WHR achieved an earnings surprise of 48.2% in the last reported quarter, with an average earnings beat of 8.9% over the past four quarters [4]. Product and Market Dynamics - The upcoming results are anticipated to show the effects of a significant product refresh cycle, particularly in North America, where new product launches are gaining traction [5]. - The Zacks Consensus Estimate for MDA North America is $2.721 billion, indicating a growth of 4.9% [6]. - The Small Domestic Appliances (SDA) segment is performing well, with a consensus estimate of $427 million, reflecting an 11.2% growth [9][10]. Margin and Cost Management - Margin performance is expected to be affected by high promotional activity due to tariff-related inventory issues, but WHR's U.S.-based manufacturing gives it a competitive edge [7]. - Cost management initiatives are projected to drive earnings, with consistent cost savings helping to offset pricing and tariff pressures [8]. Outlook and Challenges - Management has a cautious outlook for 2025, projecting net sales of $15.8 billion, down from $16.6 billion in the previous year, with ongoing EBIT margin expected at 5% [10][11]. - Competitive and macroeconomic challenges persist, particularly in international markets, but strength in the SDA segment may cushion overall results [9][10]. Valuation and Market Performance - WHR's stock has a forward 12-month price-to-earnings ratio of 12.62x, which is below its five-year high and above the industry average, indicating potential value for investors [13]. - WHR shares have increased by 18.4% over the past three months, outperforming the industry average rise of 16.3% [14].