Whirlpool Corp. WHR, the largest home-appliances manufacturer in the world, is slated to report its first-quarter 2015 results on Apr 28, 2015. In the previous quarter, the company delivered a positive surprise of 11.04%. Let’s see how things are shaping up for this announcement.
Factors Influencing the Quarter
Whirlpool has delivered lower-than-expected bottom line results in three out of the trailing four quarters, with a negative average surprise of 1.5%. Though the company’s fourth-quarter results were strong, its financial performance remains exposed to the ongoing fluctuations in foreign currency rates due to its expansive international operations, accounting for nearly 50% of its revenues. This makes us apprehensive about the company’s upcoming results.
Earnings Whispers?
Our proven model does not conclusively show that Whirlpool is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. This is not the case here as you will see below.
Zacks ESP: Whirlpool currently has an Earnings ESP of -2.81%. This is because the Most Accurate estimate stands at $2.42 per share, which is below the Zacks Consensus Estimate of $2.49.
Zacks Rank: Whirlpool’s Zacks Rank #4 (Sell) when combined with a negative ESP makes surprise prediction unlikely. We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
American Eagle Outfitters Inc.’s AEO Earnings ESP stands at +18.18% and it carries a Zacks Rank #2 (Buy).
Best Buy Co. Inc. BBY with an Earnings ESP of +3.45% holds a Zacks Rank #3 (Hold).
Deckers Outdoor Corp.’s DECK Earnings ESP stands at +100.00% and it carries a Zacks Rank #3.
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