Why Is Whirlpool (WHR) Down 10.2% Since Last Earnings Report?

It has been about a month since the last earnings report for Whirlpool (WHR). Shares have lost about 10.2% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Whirlpool due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.Whirlpool Stock Dips on Q4 Earnings Miss and Cautious OutlookWhirlpool posted its fourth-quarter 2025 results, wherein both top and bottom lines not only missed the Zacks Consensus Estimate but also declined on a year-over-year basis. The appliance maker reported fourth-quarter adjusted EPS of $1.10 per share, representing a decline of 75.9% from $4.57 reported in the year-ago period. Also, the metric missed the Zacks Consensus Estimate of $1.54 per share.  Net sales of $4.098 billion missed the Zacks Consensus Estimate of $4.267 billion and declined 0.9% year over year. Excluding the unfavorable impacts of foreign exchange, organic net sales were $4.05 billion, down 0.9% year over year.Quarterly gross profit was $575 million, down 14.3% from $671 million reported in the year-ago quarter. The gross margin fell 220 basis points (bps) year over year to 14%.Selling, general and administrative (SG&A) expenses increased 1.7% year over year to $425 million. As a percentage of net sales, SG&A expenses expanded 30 bps year over year to 10.4%. The ongoing EBIT of $135 million fell 45.6% from $248 million in the year-ago quarter. The ongoing EBIT margin of 2.7% fell 270 bps year over year.WHR’s Region-Wise Performance DetailsNet sales for the MDA North America segment fell 0.9% year over year to $2.57 billion. Excluding currency effects, the segment’s net sales declined 0.9% year over year on volume decline and price/mix, primarily in Canada. The segment’s EBIT decreased 59% year over year to $71 million, and the EBIT margin contracted 390 bps to 2.8%, reflecting a highly promotional pricing environment, continued cost pressures, and the delayed pass-through of tariff-related impact. Net sales from MDA Latin America rose 0.8% year over year to $927 million. Excluding currency, the segment’s sales dropped 4.6% year over year on weak volumes. The segment’s EBIT of $59 million declined 15.3% year over year. The EBIT margin contracted 120 bps year over year to 6.4%, attributable to a tough macro environment in Argentina and intensified competitive pressures in Brazil, somewhat offset by a tax reserve release in Brazil. Net sales in SDA Global increased 10.3% year over year to $423 million. Excluding the currency impacts, sales jumped 8% due to growth from new product launches. The segment’s EBIT of $59 million reflected a 22.4% increase from $48 million reported in the year-ago quarter. Segmental EBIT margin of 13.8% expanded 130 bps from 12.5% in the prior-year quarter due to favorable price/mix and direct-to-consumer growth. Net sales in MDA Asia declined 27.7% year over year to $172 million. Excluding the currency impacts, sales fell 2.4% to $179 million.Whirlpool’s Financial Health SnapshotWhirlpool ended 2025 with cash and cash equivalents of $669 million, long-term debt of $5.6 billion and total stockholders’ equity of $2.7 billion. The company declared a dividend of 90 cents per share for the fourth quarter of 2025.In 2025, Whirlpool generated $467 million of cash from operating activities and reported a free cash flow of $78 million. WHR incurred capital expenditure of $389 million in the same period.WHR’s 2026 OutlookWhirlpool provided its sales guidance for 2026, anticipating net sales of $15.3-$15.6 billion, reflecting approximately 5% growth on a like-for-like basis compared with 2025. The company anticipates an ongoing EBIT margin of 5.5-5.8%, indicating a rise from 4.7% reported in 2025. Price and mix are anticipated to be key margin drivers, supported by continued new product innovation and the carryover momentum from 2025 launches. Management also expects structural cost-reduction initiatives to generate more than $150 million in savings, translating into roughly 100 bps of EBIT margin expansion.Whirlpool expects its GAAP EPS for 2026 to be $6.25 compared with $5.66 reported in 2025. Ongoing EPS is expected to be $7, up from $6.23 per share reported in 2025. Management expects both the GAAP tax and the adjusted tax rate of 25%.Cash provided by operating activities is expected to total roughly $850 million, with free cash flow of $400-$500 million. In addition, management plans to reduce debt by approximately $400 million as part of its disciplined capital allocation strategy aimed at strengthening the balance sheet and enhancing shareholder value.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a flat trend in estimates review.The consensus estimate has shifted -35.89% due to these changes.VGM ScoresCurrently, Whirlpool has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Whirlpool has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks