COH, PHG, BMS Led Consumer Stock Rises in January's Final Week
Price movement of Whirlpool
Whirlpool (WHR) rose by 0.61% to close at $134.39 per share at the end of the last week of January 2016. The stock’s price movements on a weekly, monthly, and year-to-date (or YTD) basis are 0.61%, -10.5%, and -8.5%, respectively.
Technically, the stock has broken its support and is trading below all of its moving averages. Currently, WHR is trading 1.2% below its 20-day moving average, 8.7% below its 50-day moving average, and 18.5% below its 200-day moving average.
The Guggenheim S&P Equal Weight Consumer Discretionary ETF (RCD) invests 1.2% of its holdings in Whirlpool. The ETF tracks an equal-weighted index of large-cap US consumer discretionary stocks drawn from the S&P 500. The YTD price movement of RCD is -7.0% as of January 28, 2016.
The Vanguard Mid-Cap Value ETF (VOE) invests 0.83% of its holdings in Whirlpool. The ETF tracks the CRSP US Mid Cap Value Index, which classifies value stocks based on five value factors.
The market capitalizations of Whirlpool’s competitors are as follows:
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Spectrum Brands Holdings (SPB) — $5.6 billion
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Sears Holdings (SHLD) — $1.8 billion
Performance of Whirlpool in 4Q15
Whirlpool reported 4Q15 net sales of $5,560.0 million, a fall of 7.4% compared to net sales of $6,003.0 million in 4Q14. The company’s cost of products sold as a percentage of net sales and its gross margin fell by 1.2% and 2.3%, respectively, in 4Q15 compared to 4Q14.
Its net income and EPS (earnings per share) rose to $180.0 million and $2.28, respectively, in 4Q15, compared to $81.0 million and $1.02, respectively, in 4Q14.
2015 results
In 2015, WHR reported net sales of $21,000.0 million, a rise of 5.1% YoY (year-over-year). The company’s net income and EPS rose to $783.0 million and $9.83, respectively, in 2015, compared to $650.0 million and $8.17, respectively, in 2014.
Meanwhile, its cash and cash equivalents and inventories fell by 24.8% and 4.4%, respectively, in 2015. Its current ratio and debt-to-equity ratio fell to 0.95 and 2.4, respectively, in 2015, compared to 0.96 and 2.5, respectively, in 2014.
The price-to-earnings and price-to-book value ratios of Whirlpool are 15.7x and 2.2x, respectively, as of January 29, 2016.
Projections for 2016
The company has made the following projections for 2016:
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GAAP (generally accepted accounting principles) diluted EPS in the range of $11.25–$12.00 per share
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Ongoing business diluted EPS in the range of $14.00–$14.75 per share
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Free cash flow in the range of $700–$800 million, which includes restructuring cash outlays related to acquisitions of up to $200 million and capital spending of $700–$750 million