Profits Crushed: Whirlpool Slashes Guidance by 50%, Suspends Dividend, Stock Plunges 18%
WHR is trading near its 52-week low of $50.41 (10% below the low).
Summary
Whirlpool Corp. significantly cut its full-year earnings guidance by approximately 50%, from $6 per share to a range of $3 to $3.50, and announced the suspension of its dividend. The company also reported a quarterly loss of $0.56 per share, missing analyst expectations of $0.38. This news led to an 18% drop in after-hours trading. Management attributed the "recession-level industry decline" to the Iran war's impact on consumer confidence and a weak housing market, which has shifted consumers away from higher-margin products. This update represents a substantial negative shift from the company's previous financial baseline of returning to profitability in 2025. Traders will closely watch the impact of planned 4% price increases in July and the benefits from a new 25% tariff on imported appliances, which the company expects to provide a competitive advantage.
At the time of this announcement, WHR was trading at $45.15 on NYSE in the Manufacturing sector, with a market capitalization of approximately $3.6B. The 52-week trading range was $50.41 to $111.96. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.