Whirlpool Corporation (WHR) shares increased by 3.5% in after-hours trading on Monday following the announcement of the company’s first-quarter earnings, which exceeded Wall Street expectations. This came after a 0.2% decline in the regular session, closing at $140.70. Whirlpool reported a first-quarter net income of $179 million, or $3.27 per share, compared to a net income of $313 million, or $5.33 per share, during the same period last year.
Adjusted earnings, excluding stock-based compensation expenses and other items, were $2.66 per share. This was a decline from $5.31 per share in the year-ago period. Revenue also decreased to $4.65 billion from $4.92 billion in the first quarter of 2021.
Despite the decline in revenue and adjusted earnings, the growth in Whirlpool’s share price can be attributed to the company’s better-than-expected performance amidst the ongoing global supply chain challenges and increasing material costs.
A key factor that contributed to Whirlpool’s strong performance was the company’s ability to navigate the challenging supply chain environment. Whirlpool leveraged its global supply chain network and scaled regional production capabilities to mitigate material shortages and minimize the impact of rising costs on its bottom line.
Additionally, the company’s focus on premium products and its strong market position in North America helped drive sales in the region, which is its largest and most profitable market.
In a statement, Marc Bitzer, CEO of Whirlpool, said, “Despite an uncertain and volatile environment, we are able to generate better-than-expected demand and effectively navigate global supply chain challenges, resulting in strong financial results for the first quarter.”
Bitzer also highlighted Whirlpool’s ongoing commitment to cost discipline and productivity improvements, which were essential in offsetting increasing material costs and other inflationary pressures. The company’s continuous improvements in cost efficiency, along with proactive pricing actions, have enabled it to maintain margins despite external headwinds.
Looking ahead, Whirlpool remains optimistic about its growth prospects for 2022. The company expects revenue to grow by 3% to 5% and adjusted earnings per share to be in the range of $20.00 to $21.00, reflecting the positive outlook on its business performance.
Whirlpool also plans to continue investing in its core business, focusing on innovation, digital transformation, and sustainability initiatives, to drive long-term growth and create value for its shareholders.
For instance, the company recently launched a range of new products with advanced features, such as connected appliances that enable remote control and diagnostics, which have resonated well with consumers. Additionally, Whirlpool has made significant investments in its digital capabilities to enhance customer experience and streamline the purchasing journey.
On the sustainability front, Whirlpool has set ambitious targets to reduce its environmental footprint and promote circular economy practices. The company aims to achieve zero-waste manufacturing by 2030, reduce greenhouse gas emissions in its products and operations by 50%, and source 100% renewable electricity for its global operations by 2025.
In conclusion, Whirlpool’s first-quarter performance was impressive given the challenges faced by global companies amidst supply chain constraints and rising material costs. The company’s effective management of these issues, combined with its commitment to innovation, efficiency, and sustainability, has allowed it to maintain a competitive edge and position itself well for future growth.
Whirlpool’s better-than-expected results in the first quarter demonstrate the resilience of the company’s business model and its adaptability in the face of market uncertainties. As Whirlpool continues to navigate the evolving landscape, it will likely remain a key player in the home appliances industry and deliver value to its shareholders.
