Whirlpool sees strong 2020 as profit beats on pandemic boost

In this news, we discuss the Whirlpool sees strong 2020 as profit beats on pandemic boost.

(Reuters) – Whirlpool Corp WHR.N on Wednesday forecast smaller sales decline for the year and reinstated profit targets after posting better-than-expected quarterly profit as strong demand for home appliances helped it to overcome the coronavirus crisis.

Shares of Whirlpool, owner of brands such as KitchenAid and Maytag, jumped 4.5% after the bell as third-quarter sales rose 3.9%, with a strong performance in European markets offsetting weak North America, its largest segment.

Demand for home appliances has rebounded as consumers stuck at home divert discretionary income, otherwise intended for socially intensive activities like travel, home.

Whirlpool said it now expects earnings per share of between $ 17.50 and $ 18 for fiscal 2020, compared to analysts’ estimate of $ 13.71, according to IBES data from Refinitiv.

Its market in Europe, Middle East and Africa (EMEA) recorded a sales growth of 15.4%, while sales in Latin America increased by 13.7%, but the supply constraints induced by coronaviruses drove sales in North America 1.6% in the quarter.

Nonetheless, Whirlpool said it now expects net sales to drop between 5% and 7% in 2020, compared to its previous forecast of a 10% to 15% drop.

Whirlpool, which increased its quarterly dividend from $ 0.05 to $ 1.25 per share on Monday, said it earned $ 6.91 per share excluding items, beating analysts’ estimate of $ 4.20 per share.

Net income available for the company rose to $ 397 million, or $ 6.27 per share, in the third quarter ended Sept. 30, from $ 358 million, or $ 5.57 per share, a year earlier.

Sales rose 3.9% to $ 5.30 billion, beating the consensus of $ 4.76 billion.

Reporting by Shreyasee Raj in Bengaluru; Edited by Devika Syamnath

Original © Thomson Reuters

Originally posted 2020-10-22 08:06:11.

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