What’s the Latest News on Whirlpool?

Whirlpool (WHR) fell 8.0% to close at $170.85 per share during the fourth week of January 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -8.0%, -7.0%, and -6.0%, respectively, on January 27, 2017.

WHR is trading 7.3% below its 20-day moving average, 2.9% below its 50-day moving average, and 0.86% below its 200-day moving average.

The First Trust Large Cap Value AlphaDex ETF (FTA) invests 0.72% of its holdings in Whirlpool. The YTD price movement of FTA was 2.0% on January 27.

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

• Spectrum Brands Holdings (SPB) — $8.0 billion
• Sears Holdings (SHLD) — $761.0 million

In a press release on January 24, 2017, Reuters reported, “Whirlpool Corp. said on Tuesday it would restructure its Europe, Middle East, and Africa dryer manufacturing operations, and cut about 500 jobs in the region.”

It added, “The world’s No. 1 maker of home appliances said production at its Amiens, France, facility would cease in 2018 as part of the restructuring.”

The release also noted, “The company said its Yate, UK, facility would now focus on manufacturing for UK consumers solely, and the production of dryers for non-UK consumer needs would be concentrated in Lodz, Poland.”

Finally, according to the release, “Whirlpool said it expects to incur about $88 million in costs related to the restructuring.”

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

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

In 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 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 0.96x in 2016, compared to 0.89x in 2015.

Whirlpool has made the following projections for 2017:

• EPS of $13.25–$14.25
• ongoing business EPS of $15.25–$16.25
• free cash flow of ~$1 billion
• cash from operating activities in the range of $1.7 billion–$1.8 billion

Next, we’ll look at Mead Johnson Nutrition Company (MJN).