"The 50% EPS beat looks impressive until you look at what drove it. The company swung to a $73 million net loss in the quarter, down 33% year over year from $109 million. Gross profit fell 7.6% to $594 million. Operating income dropped 24.5% to $200 million. Revenue grew just 1% year over year. This is a company that beat earnings estimates largely because the bar was set low, not because business momentum is accelerating."
"Operating cash flow turned negative at negative $669 million, a sharp reversal from positive $214 million in the same period last year. Free cash flow deteriorated to negative $907 million. Capital expenditures more than doubled to $239 million, up 175% year over year. The company is spending aggressively on U.S. laundry facility investments while cash generation has collapsed. This is the number that matters most right now."
Whirlpool reported adjusted EPS of $2.09 versus $1.39 expected and revenue of $4.03 billion, slightly above estimates. Net income swung to a $73 million loss, down 33% year over year, while gross profit fell 7.6% to $594 million and operating income declined 24.5% to $200 million. Operating cash flow turned negative $669 million and free cash flow deteriorated to negative $907 million, while capital expenditures rose 175% to $239 million. North America sales grew 2.8% with market share gains and small domestic appliances jumped 10.5%, but margin compression and cash drain remain significant concerns.
Read at 24/7 Wall St.
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