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Investing.com - RBC Capital lowered its price target on Whirlpool Corporation (NYSE:WHR) to $63 from $65 on Wednesday while maintaining an Underperform rating on the home appliance manufacturer. The stock, currently trading at $83.92, has declined nearly 15% in the past week and 23% year-to-date, according to InvestingPro data.
The firm cited ongoing weakness in core operations and free cash flow misses that create a challenging outlook for the company. RBC reduced its fiscal year 2025 and 2026 adjusted EBITDA estimates by 6% and 8% respectively, with fiscal 2026 adjusted EPS now projected at $6.24, falling within Whirlpool’s newly issued guidance range of $6-8. The company’s current gross profit margin stands at 16.2%, while its current ratio of 0.72 indicates potential liquidity challenges.
RBC acknowledged that Whirlpool management "did the right thing" by cutting the dividend and resetting guidance, but expressed concern about the company’s valuation remaining unattractive even with the lowered estimates.
The analyst report highlighted "few catalysts for near-term recovery in demand, pricing, or share" for Whirlpool, noting the pressure from elevated import inventory in the market.
RBC also flagged potential risks to Whirlpool’s reduced free cash flow guidance, pointing to the significant second-half ramp-up implied in the company’s projections, while noting that leverage estimates are increasing despite the recent dividend cut.
In other recent news, Whirlpool Corporation reported its second-quarter earnings for 2025, revealing a significant miss in both earnings and revenue. The company’s earnings per share (EPS) came in at $1.34, falling short of the projected $1.82, representing a surprise of -26.37%. Additionally, revenue figures were lower than expected, with actual revenue at $3.77 billion compared to the forecasted $3.9 billion, marking a surprise of -3.33%. These recent developments have drawn attention from investors and analysts alike. The earnings miss and revenue shortfall highlight challenges the company faced during the quarter. Analysts have been closely monitoring these results to assess future performance. Whirlpool’s financial performance will likely continue to be a focal point for stakeholders.
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