BENTON HARBOR, Mich. - Whirlpool Corporation (NYSE: NYSE:WHR) reported a slight beat in its second-quarter earnings per share (EPS) at $2.39, marginally higher than the analyst consensus of $2.38.
The company's revenue for the quarter was in line with expectations, reaching $3.99 billion, matching the consensus estimate of $3.96 billion.
Despite the EPS beat, the company has revised its full-year 2024 EPS guidance downward to $12.00 from the analyst consensus of $12.54. However, Whirlpool's full-year revenue guidance of $16.9 billion is slightly above the consensus estimate of $16.77 billion.
In the second quarter, Whirlpool experienced a notable decline in net sales, down 16.8% from the same quarter last year, from $4.792 billion to $3.989 billion. This decline was partially attributed to global margin expansion and promotional pricing actions, particularly in MDA North America. The company's GAAP net earnings margin for the quarter stood at 5.5%, with GAAP earnings per diluted share at $3.96.
Whirlpool's Chairman and CEO, Marc Bitzer, expressed confidence in the company's trajectory, stating, "Our solid Q2 results and actions put us firmly on track towards expanding our margins sequentially throughout 2024," signaling optimism for the U.S. housing market's eventual recovery.
The company's segment review highlighted mixed performances across regions. MDA North America saw a 5.7% decrease in net sales, while MDA Latin America, MDA Asia, and SDA Global all delivered double-digit net sales growth for the quarter. The EBIT margins for these segments reflected the impact of promotional pricing actions and cost takeout measures.
Whirlpool's Chief Financial and Administrative Officer, Jim Peters, emphasized the company's progress towards its cost reduction goals, stating, "We completed our organizational simplification actions in the second quarter, putting us on track to deliver our cost take out goal of $300-$400 million." Peters also noted strong working capital management, which generated over $250 million in cash within the quarter.
The company's full-year outlook anticipates a GAAP net earnings margin of approximately 1.0%, with ongoing EBIT margin expected to be around 6.0%. The revised full-year ongoing earnings per diluted share to approximately $12.00 includes $300-$400 million of cost actions, with cash provided by operating activities projected at approximately $1.05 billion and free cash flow at about $500 million.
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