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On Friday, Loop Capital Markets adjusted its price target for Whirlpool Corporation (NYSE:WHR) shares, lowering it to $115 from the previous $135, while continuing to endorse the stock with a Buy rating. The stock, currently trading near its 52-week low of $75.03, offers an impressive 8.86% dividend yield. According to InvestingPro, Whirlpool has maintained dividend payments for 55 consecutive years, demonstrating remarkable shareholder commitment. The adjustment followed Whirlpool’s first-quarter earnings report, which showed performance largely in line with expectations, despite a slight sales shortfall in North America.
The sales miss was attributed to a surge in Asian imports as competitors aimed to stay ahead of potential tariffs. Despite this, with around 65% of demand stemming from the need to replace broken appliances, analysts at Loop Capital believe that demand could remain robust at what they consider to be current bottom-of-cycle levels. InvestingPro data reveals revenue declined 18.44% in the last twelve months, though analysts expect the company to remain profitable this year.
The reported quarter saw Whirlpool’s margins fall short of Loop Capital’s projections by 40 basis points. Overall demand dipped slightly below expectations, with a 19% year-over-year decline, which was more than the anticipated 16%. This decrease was largely due to the divestiture of Whirlpool’s European operations.
Loop Capital’s analysts have expressed a view that the current market valuation of Whirlpool, at 8 times the estimated 2025 earnings per share (EPS) and 6 times the estimated 2025 enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA), is indicative of an overly negative market sentiment. This valuation comes in the wake of the company’s latest financial results and market challenges. Analyst targets range from $65 to $143.45, reflecting diverse market opinions. For deeper insights into Whirlpool’s valuation and financial health, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Whirlpool Corporation reported its Q1 2025 earnings, showing a slight miss on both earnings per share (EPS) and revenue forecasts. The company announced an EPS of $1.70, just shy of the projected $1.71, and revenue of $3.62 billion, falling short of the expected $3.67 billion. Despite these minor shortfalls, the company experienced a 2% growth in organic net sales and a 160 basis point expansion in global EBIT margins. Whirlpool’s strategic initiatives, including new product launches and supply chain optimization, were highlighted as key factors in maintaining strong operational performance. The company reaffirmed its full-year guidance, expecting 3% organic growth and targeting a 100 basis point expansion in EBIT margins. Analysts from Loop Capital and Raymond (NSE:RYMD) James raised questions regarding the impact of tariffs and pricing strategies, with Whirlpool executives expressing confidence in their ability to manage these challenges. The company’s focus on domestic production and innovative product offerings is positioned as a response to evolving market conditions. These developments indicate Whirlpool’s continued efforts to navigate a challenging macroeconomic environment.
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