Earnings Preview: Whirlpool Corp.

Whirlpool Corp. (WHR) is expected to report Q3 earnings before market open Tuesday, October 28, with a conference call scheduled for 10:00 am.

Guidance

Analysts are looking for a profit of $1.69 on revenue of $4.98B. The consensus range is $1.50 to $1.83 for EPS, and revenue of $4.81B to $5.16B, according to First Call. In July, Whirlpool forecast FY08 EPS $7.00 to $7.50 vs. First Call consensus of $6.80.

Analyst Views

In a September 15 note to clients, Cowen analyst Laura Champine said that the stock is "significantly undervalued" given its long-term earnings potential and cash flow generation. As consumers limit their spending on big ticket items, Whirlpool has struggled with rising commodity costs and diminishing demand. The industry is suffering from unprecedented commodity cost inflation and weak demand, and Champine believes Whirlpool shares could "dramatically outperform" the market when cost inflation subsides and demand increases. The Association of Home Appliance Manufacturers reported shipments of key appliances decreased 17.3% in September compared to September 2007, and laundry shipments, Whirlpool's key category, fell 19%. As a result, the company recently announced plans to lay off 440 employees at an Iowa plant, over 20% of the the total there.