Whirlpool stock's already awful week just got worse.
A Stifel research note on Wednesday asks of the company: "How is it going to get better?"
Stifel analyst W. Andrew Carter downgraded the stock to Sell from Hold, and cut his price target to $20 a share, from $30 previously.
Whirlpool's challenges are greater than Stifel's already cautious expectations -- "challenges we believe are likely to accelerate," he wrote. The Michigan-based maker of kitchen and laundry appliances is losing market share in its key U.S. market, and losses could accelerate because of higher prices to offset inflation, competitor incentives, limited appliance brand loyalty, and weaker Whirlpool brand demographics.
Carter said the near-term challenges Whirlpool outlined with earnings "are likely to increase with the appliance category heavily levered to existing home sales." Home sales have struggled as home prices have risen and as 30-year fixed-rate mortgage rates have climbed to an average of 7.32% as of last week, according to Freddie Mac.
Whirlpool shares were down nearly 2%, at $26.89, around 1:30 p.m. Eastern time on Wednesday, and are down for the third straight day.
The stock is down 11.4% this month and 62.3% this year, on pace for its worst year on record, according to Dow Jones Market Data.
Whirlpool, whose brands include Whirlpool, KitchenAid, JennAir, Maytag, Amana, and InSinkErator, on Monday reported an adjusted third-quarter loss of 21 cents a share on revenue of $3.68 billion. Net sales were down 8.8% from a year ago.
Whirlpool also lowered its full-year revenue guidance to about $14.5 billion, from about $15 billion in the previous quarter, which had been lowered from $15.5 billion previously. It now expects a loss of $1.30 a share, down from its previous guidance for adjusted earnings of $2.50 to $3.00 a share after the second quarter.
Nevertheless, it still expects free cash flow of about $300 million for the full year.
CEO Marc Bitzer said Whirlpool was taking out structural costs and raising prices, which has driven progress on margins. "While the pace of recovery is slower than expected, these actions are setting a clear path for further improvements in 2027," he said.
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