Whirlpool crushes earnings and raises guidance but shares dip after hours

Author: Adam Button | Category: News

Whirlpool show which way the wind is blowing?

Whirlpool show which way the wind is blowing?
Normally, Whirlpool is one of those stocks that you want to watch to get a sense of global demand.

At the moment, that's not really the case because the pandemic led to an enormous jump in demand for durable goods. Washing machines are some of the biggest price rises in the CPI report, for instance.

In any case, the company reported sales growth of 32% and now sees earnings of $26.95/share from prior guidance of $22.50-$23.50. On the revenue side, they reported $5234m versus the $5026m consensus.

Evidently that wasn't good enough. Shares are down to $214 in the aftermarket from $218 at the close. Less than 10x earnings sounds pretty good but the company earned $16 in 2019 so that's more like 13.5x and you have to wonder if appliance demand feels a bit of a hangover in 2022.

Technically, you'd hate to see $200 break.

More broadly, I worry that many stocks are priced to perfection and we'll see more of this as earnings season cranks up. Netflix today was another example.

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