Whirlpool (WHR) 2nd quarter 2021 earnings report review
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Category: Whirlpool (WHR)
Date: 22 July 2021 Stock price of Whirlpool: $217.25 Market Capital of Whirlpool: $13.6 billion We take a look at the 2nd quarter 2021 earnings report of Whirlpool a leading kitchen and laundry appliance firm with roughly $20 billion in annual sales. For the 2nd quarter of 2021 the group reported revenue of $5.324.billion and net income of $581 million
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We are significantly raising guidance to reflect the strength of our business driven by sustained consumer demand and the successful implementation of our previously announced cost-based pricing initiatives. Our Q2 results together with our record performance over the past three years impressively demonstrate our ability to perform in a volatile environment - Marc Bitzer, Chairman and Chief Executive Officer "
More About Whirlpool (WHR)
P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide
Overview of Whirlpool's 2nd quarter 2021 earnings
Q2 2021 earnings report highlights
FULL-YEAR 2021 OUTLOOK
- Net sales growth of ~32%, driven by sustained consumer demand and cost-based pricing initiatives
- GAAP net earnings margin of 10.9% (up 1,020 basis points) and ongoing (non-GAAP) EBIT margin of 11.4% (up 640 basis points)
- Delivered cash provided by operating activities of $646 million and free cash flow of $769 million, driven primarily by strong earnings; free cash flow also driven by the completion of the partial tender offer for Whirlpool China and the divestiture of our Turkey subsidiary
- Raised full-year 2021 guidance; earnings per diluted share now expected to be ~$26.95 on a GAAP basis and ~$26.00 on an ongoing basis(1); cash provided by operating activities of $1.95 billion and free cash flow of $1.70 billion
- Delivered Q2 GAAP earnings per diluted share(1) of $9.15, driven by strong top-line growth, the execution of our cost-based price increases, and a net gain on divestment activity •
- Ongoing (non-GAAP) earnings per diluted share(1) of $6.64 were driven by strong top-line growth and the execution of our cost-based price increases
FULL-YEAR 2021 OUTLOOK
- Increased full-year 2021 net sales growth to ~16 percent from ~13 percent
- Increased GAAP earnings per diluted share to ~$26.95 from $23.10 to $24.10
- Increased ongoing earnings per diluted share(1) to ~$26.00 from $22.50 to $23.50
- Increased cash provided by operating activities to $1.95 billion from $1.70 billion
- Increased free cash flow to $1.70 billion from ~$1.25 billion
- GAAP tax rate of 22 to 24 percent from 24 to 26 percent and adjusted tax rate (non-GAAP) is unchanged at 24 to 26 percent
Whirlpool management commentary on their 2nd quarter 2021 earnings
BENTON HARBOR, Mich., July 21, 2021 - Whirlpool Corporation (NYSE: WHR), committed to being the best global kitchen and laundry company, in constant pursuit of improving life at home, today reported financial results for the second quarter of 2021.
"We are significantly raising guidance to reflect the strength of our business driven by sustained consumer demand and the successful implementation of our previously announced cost-based pricing initiatives. Our Q2 results together with our record performance over the past three years impressively demonstrate our ability to perform in a volatile environment.” - MARC BITZER
"We are significantly raising guidance to reflect the strength of our business driven by sustained consumer demand and the successful implementation of our previously announced cost-based pricing initiatives. Our Q2 results together with our record performance over the past three years impressively demonstrate our ability to perform in a volatile environment.” - MARC BITZER
" We delivered double-digit revenue growth, expanded EBIT in every region across the globe, and generated significant cash flow while navigating a challenging macroeconomic environment,“ said Jim Peters, chief financial officer of Whirlpool Corporation. ”Looking ahead, we are confident in our ability to capitalize on the structural improvements we have made in our business over the last number of years and continue to drive shareholder value.” -JIM PETERS
Stock price chart of Whirlpool (WHR) over the last 5 years
The image below shows the stock price history of Whirlpool (WHR) over the last 5 years. And it's been a pretty good time for Whirlpool over the last 5 years. Over the last 5 years the stock of Whirlpool returned 63.8% to stockholders. Not shooting the lights out but decent returns none the less
Stock price history of Whirlpool (WHR) over the last 5 years
Stock price forecast for Whirlpool (WHR)
So based on Whirlpool (WHR) latest earnings report what do we value their stock at? Our valuation model provides a target price for Whirlpool at $256 a stock. We therefore believe that the stock of Whirlpool (WHR) is undervalued.
We usually recommend investors look to enter a stock at least 10% below our target price which in this case is $256. A good entry point into Whirlpool would therefore be at $230 or below. Since the stock of Whirlpool is trading at well below this price we rate the stock of Whirlpool as a buy
We usually recommend investors look to enter a stock at least 10% below our target price which in this case is $256. A good entry point into Whirlpool would therefore be at $230 or below. Since the stock of Whirlpool is trading at well below this price we rate the stock of Whirlpool as a buy
Next earnings report of Whirlpool (WHR)
It is expected that Whirlpool will release their 3rd quarter 2021 earnings report in late October 2021
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