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Will Whirlpool (WHR) Surprise Investors in Q3 Earnings?


Whirlpool Corp. WHR is slated to release third-quarter 2016 results on Oct 25. Last quarter, the company had delivered a positive earnings surprise of 4.5%.

Further, it has outperformed the Zacks Consensus Estimate by an average of 3.5% over the trailing four quarters, with a beat in three quarters. Let’s see how things are shaping up for this announcement.

WHIRLPOOL CORP Price and EPS Surprise


Factors Influencing this Quarter

Though Whirlpool posted a top and a bottom line beat in second-quarter 2016, the company continues to struggle due to an adverse currency impact and sluggish emerging market demand, specifically in Brazil and China. While Whirlpool’s strong operational execution have considerably reduced the impact of these headwinds, the path to complete recovery still requires a lot of work. Though the company’s overall guidance looks optimistic, we cannot overlook the aforementioned challenges that may strain results throughout 2016.

For 2016, Whirlpool anticipates industry unit shipments to fall 10% in Latin America and remain flat in Asia. Moreover, the company expects the ongoing stronger dollar era to continue throughout 2016, affecting sales and earnings. The company’s full-year earnings are estimated to bear a $2 per share effect from currency headwinds.

Earnings Whispers

Our proven model does not conclusively show that Whirlpool is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:

Zacks ESP: Earnings ESP for Whirlpool is currently pegged at 0.26%. This is because the Most Accurate estimate of $3.90 is higher than the Zacks Consensus Estimate of $3.89.

Zacks Rank: Whirlpool currently has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Big 5 Sporting Goods Inc. BGFV, expected to report earnings on Oct 25, has an Earnings ESP of +3.33% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alibaba Group Holding Limited BABA, anticipated to report earnings on Oct 25, has an Earnings ESP of +2.13% and a Zacks Rank #1.

Amazon.com Inc. AMZN, slated to report earnings on Oct 27, has an Earnings ESP of +6.98% and a Zacks Rank #1.

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