Whirlpool (WHR) posted better-than-expected results after market close on Monday. The stock rose 3% after hours.
Revenue came in at $4.03 billion, beating Wall Street’s forecast of $3.93 billion, per Bloomberg consensus data. Adjusted earnings per share came in higher than expected at $2.09, versus the Street’s estimates of $1.40.
“We had a significant amount of new product launches, especially in the Kitchen Aid [and] major domestic appliance space,” Jim Peters, Whirlpool CFO, told Yahoo Finance.
A 2.8% increase in major domestic appliances in North America was driven by a refresh of 30% of its major domestic appliances portfolio, which included counter-depth refrigerators and dishwashers that automatically open at the end of a cycle to let the moisture out.
Small domestic appliances globally grew 10.5% jump, boosted by the KitchenAid business, which saw double-digit revenue growth.
Peters said it’s “still more of a replacement market,” but he expects “all the new products” to pick up in the fourth quarter and into next year as it gains “more presence in retailers.”
Similar to comments made by Lowe’s CEO, Peters believes the company is “positioned really well” to capture growth when consumers return to the housing market.
That was offset by a 7.2% decline in major domestic appliances from Asia, which saw cooler weather, and weaker currency and volatility in Argentina that dragged down Latin America by 5.2%.
For the full year, Whirlpool reiterated net sales of approximately $15.8 billion, but adjusted earnings per share are now expected to come in at roughly $7.00 per share, compared to a previously expected range of $6 to $8.
Tariffs are still a factor in the background, even though more than 80% of its US sales are produced in the US. In the third quarter, margins were hit by 250 basis points due to tariffs.
“There are certain components we bring in from outside the US that you just can’t find here, certain electronics components,” Peters said, adding that the company also faced tariffs on shipped US-made products into Canada.
Peters said he is looking for “clarity” at Thursday’s summit between President Trump and Chinese President Xi Jinping.
He expects the fourth quarter to be an intensely promotional environment, as Whirlpool looks to compete with companies that have a “glut of product right now in the US that came in ahead of the tariffs.”
