Whirlpool Stock Sinks on Appliance Maker's Weaker-Than-Expected Results, Outlook

Whirlpool Corporation (NYSE: WHR), the world's leading major home appliance manufacturer, reported fourth-quarter and full-year 2024 financial results that fell short of market expectations. The company's stock price plummeted in response, reflecting investor concerns about its future prospects. Here's a closer look at Whirlpool's performance and the implications for its stock.



Weaker-Than-Expected Results

Whirlpool's net sales declined by 18.7% in the fourth quarter of 2024, primarily due to the Europe divestiture. However, organic net sales grew by 1.9%, driven by strong small domestic appliances and international businesses. The company's ongoing EBIT margin was 6.0%, and ongoing earnings per diluted share were $4.57, supported by a favorable adjusted effective tax rate of (54)%.

Challenging Outlook

For the full year 2025, Whirlpool expects to deliver more than $200 million of cost take out and position its business for the eventual U.S. housing recovery. The company also plans to reduce its ownership stake in Whirlpool of India Ltd. to approximately 20% via a market sale and expects to pay down approximately $700 million of debt in 2025.



Investor Concerns and Stock Performance

Whirlpool's stock price has been volatile in recent months, reflecting investor concerns about the company's financial performance and outlook. The stock is currently trading at around $104.25, down from its 52-week high of $135.49. Despite the recent decline, some analysts remain optimistic about the company's long-term prospects.

Analyst Opinions

Analysts at Cowen and Company maintain a "hold" rating on Whirlpool stock, citing concerns about the company's ability to execute on its cost-cutting initiatives and achieve its financial targets. However, they also note that the company's strong brand portfolio and global presence provide a solid foundation for future growth.

Conclusion

Whirlpool's weaker-than-expected results and challenging outlook have led to a significant decline in the company's stock price. While investor concerns are valid, the company's strong brand portfolio and global presence may provide opportunities for long-term growth. As always, investors should carefully consider the risks and potential rewards before making any investment decisions.