Whirlpool Corp. (WHR)

Whirlpool Corp. (WHR) stock dropped by 5.15% due to the release of disappointing preliminary fourth-quarter results by its competitor, Electrolux (ELUXY)

• Electrolux's Preliminary Q4 Results: Electrolux, the Stockholm-based appliance manufacturer, announced preliminary fourth-quarter results that fell short of expectations. They expect net sales to decrease by 1% to SEK 35.6 billion, accompanied by an operating income loss of SEK 700 million.
• Impact on Whirlpool: The news had a negative effect on Whirlpool's shares, causing a more than 3% drop in their value. Electrolux's challenges in the North American segment were particularly noteworthy, with intensified price pressures, weak demand during Black Friday, and increased costs related to transitioning to a new cooking manufacturing facility in Springfield, Tennessee.
• Electrolux's Upcoming Earnings Report: Electrolux is scheduled to report its final fourth-quarter results on February 2, with revenue and non-GAAP earnings forecasted at SEK 34.96 billion and SEK 5.97 ($3.41 billion and $0.58), respectively.
• Whirlpool's Upcoming Q4 Results: Whirlpool (WHR) is set to announce its fourth-quarter results on January 30, with revenue estimates of approximately $4.98 billion and non-GAAP earnings of around $3.55. It's worth noting that Whirlpool had recently revised its guidance for the year 2023. In summary, the decline in Whirlpool Corp. (WHR) stock was driven by the disappointing preliminary results of its competitor Electrolux and the concerns surrounding the appliance market, particularly in North America. Investors will be closely watching Whirlpool's upcoming earnings report for further insights into the company's performance.

Shares of Whirlpool Corporation (WHR) dropped by 15.83% from $125.61 to $105.73 in the trading on Thursday, October 26, 2023. The reasons why WHR stock down include:

• Earnings Beat: Despite posting better-than-expected third-quarter results with revenue growing by 3% to $4.926 billion, and adjusted earnings per share of $5.45, the company failed to meet market expectations.
• Guidance Cut: Whirlpool reaffirmed its full-year 2023 revenue guidance of $19.4 billion but lowered its adjusted earnings outlook to $16 per share, at the lower end of its previous range of $16 to $18 per share. This reduction in earnings guidance disappointed investors.
• Market Concerns: The market reacted negatively, as demand weakness in key European countries and "soft consumer sentiment" in Asia continue to impact Whirlpool's performance.
• Pending Divestiture: Whirlpool confirmed that its pending divestiture of much of its European operations has been approved by regulatory bodies but won't be completed until April 2024. Investors appeared underwhelmed by the disconnect between Whirlpool's strong quarterly performance and its reduced earnings guidance, prompting the significant stock price decline. The company's ability to demonstrate improved growth and earnings in the future will be closely watched.