NEW YORK, July 29, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Whirlpool Corp. (NYSE: WHR). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=WHR
Highlights from our WHR Report include:
- Earnings Beat Estimates - On July 22, 2015, Whirlpool Corporation reported its Q2 results. GAAP net earnings for the quarter were $177 million, or $2.21 per diluted share, compared to $179 million, or $2.25 per diluted share in the prior year quarter. Adjusted EPS of $2.70 exceeded the Zacks Consensus Estimate of $2.67 and also rose 3.1% Y-o-Y, supported by the cost and capacity-reduction initiatives, favorable price/mix and benefits from the acquisition integration activities. Revenues for the period were $5,208 million, up 11% Y-o-Y. Excluding the impact of foreign currency, sales advanced nearly 25% Y-o-Y, backed by acquisitions.
- Operating Performance - GAAP operating profit for the reported period totaled $273 million versus $291 million in the corresponding quarter prior-year. Adjusted operating profit for the quarter rose 7.6% to a record of $355 million from $330 million in the year-ago quarter. However, operating margin contracted to 6.8% from 7.1%. While the adjusted operating margins benefited from acquisition integration activities, cost and capacity-reduction initiatives and ongoing cost productivity, they were more than offset by unfavorable currency.
- Impressive Regional Performance - North American sales reached $2.7 billion, mostly unchanged from a year earlier, while increasing 1% excluding the currency impact. The region reported an operating profit of $287 million, compared to $285 million in Q2 2014. Latin American sales fell 18.2% Y-o-Y to $900 million from $1.1 billion. However, excluding the currency impact, sales rose 1%. The region reported GAAP operating profit of $36 million, or 4.2% of sales, compared to $87 million, or 8.0% of sales, in Q2 2014. Sales from Asia rose 81% Y-o-Y to $381 million and were up 85%, excluding the currency impact. The region reported a GAAP operating profit of $27 million, compared to an operating profit of $4 million in Q2 2014. Sales in Europe, the Middle East and Africa surged to $1.3 billion from $0.7 billion reported in Q2 2014. Excluding the impact of currency, sales increased over 127%. The region reported operating profit of $51 million, compared to $2 million in the same prior-year period.
- Guidance for full year 2015 - The Company raised its full-year 2015 GAAP earnings forecast to $9.50 to $10.50 per share, driven by gains from investments in Latin America. Additionally, the Company has retained its guidance for adjusted diluted EPS in the range of $12.00 to $13.00. Further, the Company continues to expect to generate free cash flow of c. $700 million.
To find out how this influences our rating on Whirlpool Corp., read the full report in its entirely here: http://www.aciassociation.com/?c=WHR
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