High mortgage rates aren't the only thing weighing on home improvement demand, according to executives at Whirlpool Corp. (WHR), the maker of Whirlpool, KitchenAid, and Maytag appliances, which says the presidential election is another source of stress on the consumer dollar.
The company reassured investors it was on track to meet its full-year guidance, which was enough to send the stock soaring.
Whirlpool Corporation (NYSE:WHR ) Q3 2024 Earnings Call Transcript October 24, 2024 8:00 AM ET Company Participants Scott Cartwright - IR Marc Bitzer - Chairman and CEO Jim Peters - CFO and CAO Conference Call Participants David MacGregor - Longbow Research Susan Maklari - Goldman Sachs Mike Dahl - RBC Capital Markets Laura Champine - Loop Capital Rafe Jadrosich - Bank of America Eric Bosshard - Cleveland Research Scott Cartwright Good morning, and welcome to Whirlpool Corporation's Third Quarter 2024 Earnings Call. Today's call is being recorded.
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.