Whirlpool Partners with Century Communities

Whirlpool (WHR) rose 0.74% to close at $166.84 per share during the fifth week of November 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.74%, 11.3%, and 16.3%, respectively, as of December 2, 2016.

WHR is trading 3.6% above its 20-day moving average, 4.3% above its 50-day moving average, and 1.6% below its 200-day moving average.

The First Trust Large Cap Value AlphaDex ETF (FTA) invests 0.34% of its holdings in Whirlpool. The YTD price movement of FTA was 20.2% on December 2, 2016.

The market caps of Whirlpool’s competitors are as follows:

• Spectrum Brands Holdings (SPB): $7.0 billion
• Sears Holdings (SHLD): $1.4 billion

In a November 28, 2016, press release, Whirlpool stated, “Century Communities, a top-25 U.S. homebuilder based on homes delivered, has signed an exclusive agreement with Whirlpool Corporation to equip new homes with Whirlpool, KitchenAid and Jenn-Air brand appliances.”

It added, “The three-year contract between the Colorado-based homebuilder and the world’s leading manufacturer of major home appliances became effective Aug. 1, 2016.”

Whirlpool reported 3Q16 net sales of $5.2 billion, a fall of 0.55% compared to net sales of $5.3 billion in 3Q15. The company’s gross margin and operating margin rose 30 basis points and 90 basis points, respectively, in 3Q16 compared to the prior year’s period.

Its net income and EPS (earnings per share) rose to $238.0 million and $3.10, respectively, in 3Q16 compared to $235.0 million and $2.95, respectively, in 3Q15.

Whirlpool’s cash and cash equivalents and inventories rose 32.8% and 22.5%, respectively, in 3Q16 compared to 4Q15.

Whirlpool has made the following projections for fiscal 2016:

• EPS of $11.50–$11.75
• ongoing business EPS of $14–$14.25
• free cash flow of ~$700.0 million
• cash generation from operating activities of $1.35 billion–$1.40 billion

Next, we’ll take a look at PepsiCo (PEP).