Shares of Whirlpool Corp (WHR.N) rose in pre-market trading on Friday after the appliance maker revised its expectations for 2015 earnings per share but posted higher-than-expected third quarter earnings.
The revised guidance was “undoubtedly” better than expected, Robert Wetenhall, an analyst at RBC Capital Markets told Reuters.
Whirlpool revised its outlook full-year ongoing business earning per diluted share to $12 to $12.50 from $12 to $13. According to Thomson Reuters data, analysts had estimated $11.96 for full-year 2015 earnings per share.
“Whirlpool lowered its full year guidance slightly, but we believe not as much as investors had feared,” said Megan McGrath, an analyst at MKM Partners in a note. The new range of $12 to $12.50 may actually be higher than some investors had expected, McGrath added.
Whirlpool shares rose 3.62 percent to $165.60 following the earnings release.
The company said changes in the 2015 outlook reflected continued weaker sales in Latin America, the negative impact of the stronger U.S. dollar and an effort to improve margins.
Weak demand in Brazil led Latin American sales to decline to $800 million from $1.1 billion a year ago, while sales in North America were mainly flat at $2.8 billion.
Sales in Europe, Middle East and Africa rose to $1.5 billion, up from $800 million a year ago. Whirlpool Asia also saw an increase in sales to $346 million, from $157 million in the same quarter last year.
Overall, third-quarter sales jumped 9 percent to $5.3 billion from $4.8 billion a year ago, slightly lower than expectations of $5.41 billion.
The company lowered its expected 2015 full-year capital spending to $700 to $750 million, down from a previously forecast $750 to $800 million. Expected 2015 full-year free cash flow was also revised to about $600 to $700 million in 2015, down from $700 million.
The Benton Harbor, Michigan-based appliance maker planned a third-quarter earnings conference call on Friday at 10 a.m ET.
The company posted a higher quarterly net profit citing benefits from costs and capacity reductions, acquisitions, and favorable price-mix which offset declining demand in Latin America and unfavorable currency exchange rates.
Whirlpool reported third-quarter net income at $235 million, up from $230 million a year ago. Its ongoing business earnings per diluted share rose to $3.45 from $3.04 and topped the $3.29 expected by analysts.
REUTERS
