Analyzing Whirlpool’s Performance in 4Q16

Price movement

Whirlpool (WHR) has a market cap of $13.0 billion. It fell 8.6% and closed at $173.94 per share on January 26, 2017. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -6.1%, -4.4%, and -4.3%, respectively, on the same day. Whirlpool is trading 5.9% below its 20-day moving average, 0.97% below its 50-day moving average, and 0.91% above its 200-day moving average.

Analyzing Whirlpool’s Performance in 4Q16

Related ETF and peers

The First Trust Large Cap Value AlphaDex ETF (FTA) invests 0.72% of its holdings in Whirlpool. FTA’s YTD price movement was 2.7% on January 26.

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

  • Spectrum Brands Holdings (SPB) – $8.0 billion
  • Sears Holdings (SHLD) – $816.4 million

Performance in 4Q16

Whirlpool reported 4Q16 net sales of $5.7 billion—a rise of 1.7% compared to net sales of $5.6 billion in 4Q15. The company’s gross margin and operating margin narrowed by 110 basis points and 90 basis points, respectively, in 4Q16—compared to the same period last year.

Its net income remained the same at $180.0 million for 4Q16 and 4Q15. However, its EPS (earnings per share) rose to $2.36 in 4Q16—compared to $2.28 in 4Q15.

Fiscal 2016 results

In fiscal 2016, Whirlpool reported net sales of $20.7 billion—a fall of 0.8% YoY (year-over-year). The company’s gross margin and operating margin rose by 10 basis points and 30 basis points, respectively, in 2016.

Its net income and EPS rose to $888.0 million and $11.50, respectively, in 2016—compared to $783.0 million and $9.83, respectively, in 2015.

Whirlpool’s cash and cash equivalents and inventories rose 40.5% and 0.2%, respectively, in 2016. Its current ratio rose to 0.96 in 2016—compared to 0.89 in 2015.

Projections

Whirlpool made the following projections for fiscal 2017:

  • EPS of $13.25 to $14.25
  • ongoing business EPS of $15.25 to $16.25
  • free cash flow of ~$1 billion
  • cash from operating activities in the range of $1.7 billion to $1.75 billion

Next, we’ll look at Mattel (MAT).