Whirlpool Corporation WHR is slated to release first-quarter 2025 results on April 23, after the closing bell. The household appliance company’s bottom line is expected to have declined year over year.

For first-quarter revenues, the Zacks Consensus Estimate is pegged at $3.68 billion, indicating an 18.1% decrease from the prior-year quarter’s reported figure. The consensus estimate for quarterly earnings has remained stable in the past seven days at $1.73 per share. The consensus mark for earnings indicates a 2.8% decline from the year-ago quarter’s reported figure. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Whirlpool Corporation Price, Consensus and EPS Surprise

Whirlpool Corporation price-consensus-eps-surprise-chart | Whirlpool Corporation Quote

The company delivered an earnings surprise of 4.1% in the last reported quarter. The bottom line surpassed the Zacks Consensus Estimate by 7.2%, on average, in the trailing four quarters.

Key Factors to Influence WHR’s Q1 Results

Whirlpool's quarterly performance is expected to have been impacted by a challenging macroeconomic environment in the United States. The company has been grappling with persistent global demand softness and an unfavorable price/mix for some time.

Whirlpool’s performance is closely tied to consumer discretionary spending and the housing market, impacted by persistent inflation, elevated interest rates and higher mortgage costs. As a result, consumers have increasingly shifted their purchasing behavior, delaying or scaling back on large home-related expenditures such as appliances. These trends are expected to have pressured Whirlpool's revenues and earnings in the to-be-reported quarter.

Rising raw material and input costs, coupled with supply chain inefficiencies and excess inventory, could have led to margin compression. While supply chain operations have improved compared with the past disruptions, the lower production volume and tight inventory levels could limit Whirlpool’s ability to respond quickly if demand picks up. Overall, supply chain adjustments and reduced production in late 2024 are expected to remain a short-term challenge in the to-be-reported quarter.

Whirlpool is expected to see weakness in some of its business segments in the first quarter of 2025, which could hurt overall results. In the North America, the major appliance segment is under pressure due to low demand, especially for non-essential or discretionary purchases. High interest rates and slow home sales are causing customers to delay buying new appliances. These are likely to have affected the volume in the first quarter of 2025.

However, WHR is taking decisive steps to protect margins and boost productivity through cost-reduction efforts, including organizational simplification and supply chain alignment. Key actions include cutting structural costs, managing working capital efficiently and benefiting from raw material deflation. A major milestone was the sale of its European business, opening doors for future growth.

What the Zacks Model Unveils for WHR Stock

Our proven model does not conclusively predict an earnings beat for Whirlpool this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

WHR currently has an Earnings ESP of -14.29% and a Zacks Rank #4 (Sell).

Valuation Picture of WHR Stock

From a valuation perspective, Whirlpool stock trades at a premium relative to the industry. WHR has a forward 12-month price-to-earnings ratio of 7.84X, above the Household Appliances industry’s average of 6.85X. However, the company’s stock trades below the historical benchmarks, with a five-year high of 13.41X.

The recent market movements show that WHR’s shares have lost 40.5% in the past three months compared with the industry's 39.1% growth.

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Stocks With the Favorable Combination

Here are some companies that, according to our model, have the right combination of elements to post an earnings beat:

V.F. Corporation VFC currently has an Earnings ESP of +32.30% and flaunts a Zacks Rank #1. VFC is likely to register a decline in the bottom line and an increase in the top line when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.2 billion, indicating a 7.7% decline from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for VFC’s earnings is pegged at 15 cents per share, implying a 53.1% gain from the year-ago quarter’s actual. The consensus mark for earnings has remained stable in the past 30 days.

Royal Caribbean Cruises RCL currently has an Earnings ESP of +0.79% and a Zacks Rank #3. RCL is likely to register growth in its top and bottom lines when it reports first-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.0 billion, indicating 7.4% growth from the figure reported in the year-ago quarter.

The consensus estimate for Royal Caribbean’s earnings is pegged at $2.52 per share, implying a 42.4% increase from the year-earlier quarter. The consensus mark for earnings has remained stable in the past 30 days.

Fox FOXA currently has an Earnings ESP of +6.67% and a Zacks Rank #2. FOXA is likely to register growth in its top and bottom lines when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.2 billion, suggesting 19.9% growth from the figure reported in the year-ago quarter.

The consensus estimate for FOXA’s earnings is pegged at 90 cents per share, implying a 17.4% decline from the year-earlier quarter. The consensus mark for earnings has been unchanged in the past 7 days.

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This article originally published on Zacks Investment Research (zacks.com).

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