Whirlpool Q3 Earnings Beat, MDA North America Unit Sales Up 2.8%

Whirlpool Corporation WHR posted third-quarter 2025 results, wherein the bottom and top lines surpassed the Zacks Consensus Estimate and the latter increased year over year. The appliance maker reported third-quarter adjusted EPS of $2.09 per share, showcasing a decline of 39.1% from $3.43 per share reported in the year-ago period. However, the metric beat the Zacks Consensus Estimate of $1.41 per share.  Shares of this Zacks Rank #4 (Sell) company have lost 12.9% in the past three months compared with the industry’s 12.8% drop.Whirlpool’s Quarterly Performance: Key Metrics and InsightsNet sales of $4.033 billion inched up 1% year over year, as new products have been gaining traction in North America alongside managing the near-term unfavorable tariff impacts. The metric excluding currency came in at $4.031 billion. Sales beat Zacks' Consensus Estimate of $3.925 billion.Whirlpool Corporation Price, Consensus and EPS Surprise Whirlpool Corporation price-consensus-eps-surprise-chart | Whirlpool Corporation QuoteWhile Major Domestic Appliance (MDA) segments in Latin America and Asia reported declines, the Small Domestic Appliances (SDA) and MDA North America segments delivered growth.Quarterly gross profit was $594 million, down 7.6% from $643 million reported in the year-ago quarter. The gross margin fell 140 basis points (bps) year over year to 14.7%.Selling, general and administrative (SG&A) expenses increased 2.5% year over year to $405 million. As a percentage of net sales, SG&A expenses expanded 10 bps year over year to 10%.The ongoing EBIT of $180 million fell 22.7% from $233 million in the year-ago quarter. The ongoing EBIT margin of 4.5% fell 140 bps year over year.WHR’s Region-Wise Performance DetailsNet sales for the MDA North America segment edged up 2.8% year over year to $2.72 billion. Excluding currency effects, the segment’s net sales rose 2.9% year over year on robust share gains. The segment’s EBIT decreased 30.6% year over year to $134 million and the EBIT margin contracted 240 bps to 4.9%, affected by foreign competitors' inventory pre-loading. The Zacks Consensus Estimate for net sales of the MDA North America segment was pegged at $2.61 billion.Net sales from MDA Latin America declined 5.2% year over year to $802 million. Excluding currency, the segment’s sales dropped 6.3% year over year on weak volumes. The segment’s EBIT of $45 million declined 22% year over year. The EBIT margin contracted 120 bps year over year to 5.7%, attributable to a tough macro environment in Argentina and negative price/mix. The Zacks Consensus Estimate for net sales of the MDA Latin America segment was pegged at $818 million.Net sales in MDA Asia fell 7.3% year over year to $222 million. Excluding the currency impacts, sales fell 4% on lower volumes. The segment’s EBIT of $4 million decreased 37.9% year over year. Segmental EBIT margin of 1.8% fell 110 bps on volume decreases, partly offset by cost take-out actions. The Zacks Consensus Estimate for net sales of the MDA Asia segment was pegged at $235 million.Net sales in SDA Global increased 10.5% year over year to $288 million. Excluding the currency impacts, sales jumped 9.5% due to growth from new product launches. The segment’s EBIT of $47 million reflected a 28.8% increase from $37 million reported in the year-ago quarter. Segmental EBIT margin of 16.5% expanded 230 bps from 14.2% in the prior-year quarter due to favorable price/mix and direct-to-consumer growth. The Zacks Consensus Estimate for net sales of the SDA Global segment was pegged at $289 million.Whirlpool’s Financial Health SnapshotWhirlpool ended the third quarter with cash and cash equivalents of $934 million, long-term debt of $6.2 billion and total stockholders’ equity of $2.6 billion. The company declared a dividend of 90 cents per share for the fourth quarter of 2025.In the first nine months of 2025, Whirlpool used cash of $669 million from operating activities. It reported a negative free cash flow of $907 million. WHR incurred capital expenditure of $239 million in the same period.WHR’s 2025 OutlookFor 2025, Whirlpool continues to anticipate net sales of $15.8 billion, down from $16.6 billion reported in the year-ago period. On a like-for-like basis, the metric remains flat. The company anticipates an ongoing EBIT margin of 5%, down from 5.3% reported in 2024. Price/mix is likely to favorably impact the EBIT margin owing to product launches. Management expects the GAAP tax rate of 8.8% and adjusted tax rate of 8% for 2025. Whirlpool expects its GAAP EPS for 2025 to be $6.00 against a loss of $5.87 per share. Ongoing EPS is expected to be $7.00, down from $12.21 per share reported in 2024. It forecasts approximately $200 million of structural cost take-out.Cash provided by operating activities is expected to be nearly $600 million, with an estimated free cash flow $200 million.Key Picks in the Consumer Discretionary Space Boyd Gaming BYD, which is a gaming company, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. BYD delivered a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for BYD’s current financial-year EPS indicates growth of 5.2% from the year-ago number. Guess?, Inc. GES, which is a designer and marketer of casual apparel and accessories, currently carries a Zacks Rank #2 (Buy). GES delivered a trailing four-quarter earnings surprise of 26.7%, on average. The Zacks Consensus Estimate for GES’ current financial-year sales indicates growth of 7% from the year-ago number. Hanesbrands Inc. HBI, which is a designer and manufacturer of apparel essentials for men, women and children in the US and internationally, currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for HBI’s current financial-year EPS is expected to rise 65% from the corresponding year-ago reported figure. HBI delivered a trailing four-quarter earnings surprise of 56.1%, on average.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Whirlpool Corporation (WHR): Free Stock Analysis Report Hanesbrands Inc. (HBI): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report Boyd Gaming Corporation (BYD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks