Whirlpool shares crashed as much as 20% in premarket trading after the appliance maker slashed its full-year outlook and posted weaker-than-expected first-quarter results. Management directly blamed the three-month war in the Middle East for triggering a collapse in U.S. appliance demand.
Whirlpool began the earnings release with this statement: "War in Iran resulted in a recession-level industry decline in the U.S. as consumer confidence collapsed in late February and March."
For the first quarter, the maker of refrigerators, freezers, dishwashers, ovens, ranges, cooktops, microwaves, and range hoods missed Bloomberg Consensus estimates across key metrics, underscoring a sharp deterioration in demand and profitability.
Net sales in the quarter came in at $3.27 billion, below the $3.42 billion estimate. North America sales were soft at $2.24 billion, missing expectations of $2.4 billion, while Latin America sales were weak at $774 million, missing estimates of $785.5 million.
The company posted an ongoing loss of 56 cents per share, compared with earnings per share of $1.70 a year earlier. This result was far below analyst expectations of a loss of 36 cents per share.
EBIT, or earnings before interest and taxes, plunged 79% year over year to $44 million, missing the $110.8 million consensus estimate.
Snapshot of 1Q Earnings (courtsey of BBG):
Net sales $3.27 billion, estimate $3.42 billion
Ongoing loss/share 56c vs. EPS $1.70 y/y, estimate EPS 36c
Ongoing EBIT $44 million, -79% y/y, estimate $110.8 million
Source: ZeroHedge News
