Whirlpool's Price Hikes Offset by Inflation, Tariff Headwinds, BofA Says

MT Newswires Live10-29

Whirlpool's (WHR) price hikes have been offset by headwinds from tariffs, raw material costs, and logistics costs, leading to a Q3 earnings miss, BofA Securities said in a note emailed Wednesday.

The company reported a Q3 adjusted loss late Monday of $0.21 per diluted share on revenue of $3.68 billion. Analysts polled by FactSet expected EPS of $0.73 on revenue of $3.93 billion.

North American steel prices have risen about 50% from a year ago, and Whirlpool expects costs to remain higher in 2027 after renewing two of three major contracts at prices it called "fair," according to the note. Resin and freight costs also pressured the company in H2 and are seen persisting into next year, BofA analysts said.

Mix is also deteriorating for the company amid weakening demand and customers trading down, while Brazil absorbs major retailer Grupo Casas Bahia bankruptcy, BofA said.

The analysts lowered their adjusted EPS estimates to $1.24 loss from $0.34 for 2026, and to $0.30 from $2.39 for 2027.

BofA reiterated the company's stock rating at underperform and cut the price target to $20 from $25.

Price: 27.13, Change: -0.29, Percent Change: -1.05

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment