Whirlpool Corp. WHR is scheduled to release first-quarter 2016 results on Apr 26. The big question facing investors is, whether this home appliances manufacturer will be able to continue with its positive earnings surprise streak in the quarter to be reported. The company’s past performance reveals that it surpassed the Zacks Consensus Estimate in the preceding three quarters. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Whirlpool is likely to beat earnings 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. Whirlpool has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $2.71. Whirlpool’s Zacks Rank #2 (Buy) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
Analysts remain optimistic about Whirlpool’s strategic endeavors to improve margins on the back of cost- and capacity-reduction initiatives, encouraging price/mix, growth in adjacent businesses, and synergies arising from integration of acquisitions. However, foreign currency headwinds and softness across emerging markets, which are hampering demand, raise concerns.
The company had earlier guided that weakness in demand from emerging markets such as Brazil, China and Russia/Ukraine, is likely to impact earnings by about 50 cents per share and sales by $200 million. Also, the company anticipates the ongoing stronger dollar era to continue throughout 2016, weighing about $1 billion on sales and $2.50 per share on earnings.
Nonetheless, Whirlpool's strategy of undertaking innovations that helps it to tap additional sales and gain market share, holds promise.
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:
Beacon Roofing Supply, Inc. BECN has an Earnings ESP of +33.33% and a Zacks Rank #1 (Strong Buy).
Coca-Cola Enterprises, Inc. CCE has an Earnings ESP of +2.50% and a Zacks Rank #2.
Cabela's Incorporated CAB has an Earnings ESP of +10.81% and a Zacks Rank #3 (Hold).
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WHIRLPOOL CORP (WHR): Free Stock Analysis Report
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