Whirlpool's Q3 2024 results show year-over-year declines in sales and earnings. However, the company is set to benefit from a U.S. housing recovery.
The headline numbers for Whirlpool (WHR) give insight into how the company performed in the quarter ended September 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Whirlpool (WHR) came out with quarterly earnings of $3.43 per share, beating the Zacks Consensus Estimate of $2.99 per share. This compares to earnings of $5.45 per share a year ago.
Evaluate the expected performance of Whirlpool (WHR) for the quarter ended September 2024, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
WHR's third-quarter 2024 results are likely to reflect the impacts of a tough macro environment, coupled with sluggish demand and inflationary pressures.
The time to buy Whirlpool NYSE: WHR for its dividend is now. The stock offers a buying opportunity that has been years in the making and will be viewed favorably for years to come.
Whirlpool's dividend yield of 6.78% is rare and historically signals a strong buy opportunity, as seen in 2009 and near 2020. WHR's dividend is safe, with a payout ratio of 43% and ample free cash flow coverage, despite a SeekingAlpha rating of D. Management's confidence in maintaining dividends and benefiting from housing shortages further supports WHR's investment appeal.
Whirlpool offers a 6.5% yield, 24% CAGR potential through 2026, and is 35% historically undervalued, making it an attractive investment despite its high volatility. The company is expected to recover 67% EPS by 2029, driven by economic growth, tax cuts, and AI economic boosts, leading to a 133% return potential. WHR's speculative nature stems from its cyclical industry and high volatility, but its strong dividend history and improving balance sheet provide confidence.
The latest trading day saw Whirlpool (WHR) settling at $102.41, representing a -0.93% change from its previous close.
Whirlpool's deteriorating margin performance is of concern to investors. The problem may be related to relatively high interest rates curtailing discretionary appliance purchases and a deteriorating market position.
Whirlpool (WHR) closed the most recent trading day at $97.19, moving +0.08% from the previous trading session.
Whirlpool's stock has dropped 28.3% over the past year, presenting a buying opportunity under $100 with a 7.0% dividend yield. The company is expected to benefit from anticipated lower interest rates, which could boost consumer demand for big-ticket appliances and housing market activity. Whirlpool's shares are extremely undervalued, trading at significantly lower multiples compared to the S&P 500, offering a strong margin of safety.