Whirlpool faces headwinds from declining consumer confidence and tariff policy changes but shows robust performance in MDA Asia and SDA Global segments. Using a dividend discount model, WHR's fair value is estimated at $116 per share, indicating significant upside from the current price of $80. Despite macroeconomic challenges, WHR expects top-line growth and improved free cash flow in 2025.
Whirlpool Corporation reported solid Q1 results in a turbulent operating environment, continuing cost take out. President Trump's tariffs provide Whirlpool a cost edge against previously cost-advantaged Asian competition. Tariffs are a short-term headwind for Whirlpool, but a clear long-term tailwind. Whirlpool's 8.8% dividend should be sustained, making WHR stock attractive. While coming with significant risks, I currently estimate 60% upside to $127.6.
The 6.8% dividend yield of UPS (UPS 1.80%) stock and the 9.1% dividend yield of Whirlpool (WHR 2.87%) stock are obviously attractive for passive income-seeking investors. However, there's no such thing as a free lunch, and their yields reflect some doubt in the marketplace around the sustainability of their dividends.
WHR's Q1 reflects soft top- and bottom-line performance due to the Europe divestiture, despite margin expansion, and sales growth in MDA Global and MDA Asia.
Whirlpool Corporation (NYSE:WHR ) Q1 2025 Earnings Conference Call April 24, 2025 8:00 AM ET Company Participants Scott Cartwright - Investor Relations Marc Bitzer - Chairman and Chief Executive Officer Jim Peters - Chief Financial and Administrative Officer Conference Call Participants Laura Champine - Loop Capital Sam Darkatsh - Raymond James Michael Rehaut - JPMorgan Susan Maklari - Goldman Sachs David MacGregor - Longbow Research Mike Dahl - RBC Rafe Jadrosich - Bank of America Eric Bosshard - Cleveland Research Scott Cartwright Good morning, and welcome to Whirlpool Corporation's First Quarter 2025 Earnings Call. Today's call is being recorded.
Whirlpool (WHR) came out with quarterly earnings of $1.70 per share, missing the Zacks Consensus Estimate of $1.76 per share. This compares to earnings of $1.78 per share a year ago.
Whirlpool sales dropped in the latest quarter with business taking a hit as tariffs prompted Asia-based appliance manufacturers to ramp up shipments into the U.S. and put a chill on its business in Canada and Europe.
Whirlpool NYSE: WHR faces challenges and headwinds like any business in 2025, including the impacts of tariffs and trade relations. However, its high-quality operations have improved over the past year, further improvements are expected, and its 9% yield is reliable.
WHR's first-quarter results are likely to reflect a challenging macroeconomic environment, including global demand softness and an unfavorable price/mix.
WHR's recent stock performance and premium valuation reflect growing investor concerns as it continues to navigate the tough macroeconomic pressures.
Whirlpool (WHR) is a solid dividend income pick with an 8.2% yield, despite a 27% stock drop over the past year. WHR is undergoing restructuring, reducing its stake in Whirlpool India, and expects $550 million in free cash for 2025. Management aims to reduce debt to 3.4x by end of 2025, supported by strong cash flow and a $550 million cash infusion.
Whirlpool stock is a buy due to its 70-year dividend history, decade-low trading price, and potential 15% ROI over 5-10 years if debt is managed. The company benefits from tariffs in the short term due to its U.S. manufacturing, making it more competitive against imports. Whirlpool's performance is tied to housing market dynamics, with new construction and discretionary spending being key sales drivers, supported by macroeconomic indicators.