Whirlpool Analyst Remains Bearish Following Q3 EBIT Miss, Lower 2026 Outlook
Priya Nigam 1 week ago
Analyst RatingsAnalyst ColorEarningsReiterationEarnings Misses
Whirlpool’s Q3 adjusted EBIT missed estimates by 40%; BofA reiterated Underperform and a $25 price target after major guidance cuts.
Whirlpool Corp (NYSE:WHR) reported third-quarter results on Monday, including lower-than-expected sales estimates weighing on margins, according to Bank of America Securities analyst Rafe Jadrosich.
The Whirlpool Analyst: Jadrosich reiterated an Underperform rating and price target of $25.
The Whirlpool Thesis: The company reported adjusted EBIT of $97 million, around 40% below the BofA estimate of $164 million, Jadrosich said in the note.
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The analyst highlighted the following from Whirlpool’s third-quarter print:
- Sales declined by 5.4% year-on-year on an organic basis to of $3.677 billion.
- The downturn was led by an 8% decline in Major Domestic Appliance (MDA) North America sales and a 1% contraction of Small Domestic Appliance (SDA) Global sales.
- MDA Latin America sales grew by 7% year-on-year.
- Adjusted EBIT margin came in at 2.6%, well below Bank of America’s estimate of 4.3%.
- MDA North America margins contracted by around 190 basis points (bps).
Management lowered 2026 revenue guidance to about $14.5 billion from about $15 billion, with organic revenue expected to contract by 1.3% on a 5% decline in MDA North America shipments and a 0.25% price/mix benefit, Jadrosich said.
Management also cut their 2026 adjusted EBIT guidance to $293 million, from $630 million, on a 2.0%-2.2% margin, he added.
"Despite the cut to EBIT, management maintained FCF guidance of $300M, as they raised working capital impact to +$300M (from +$150M) on stronger cash collection and inventory optimization," the analyst wrote.
The guidance implies free cash generation of around $1.4 billion in the fourth quarter of 2026, he further noted.
Key Questions: Whirlpool is scheduled to host its earnings call on Wednesday. The analyst noted the key topics for the call:
- Drivers of the sequential improvement in price/mix
- Market share expectations with recent price hikes
- Expectations for price realization
- Expectations for 2027 steel inflation
- Price cost assumptions heading into 2027
- Drivers of the working capital improvement
WHR Price Action: Shares of Whirlpool had risen by 0.34% to $26.54 at the time of publication on Tuesday.
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