Whirlpool Stock Tumbles After Earnings. Analysts See Pressures on Margins.

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Shares of the home appliance company are on track for their worst day in more than three years.

Shares of Whirlpool were spiraling lower after revised earnings guidance from the appliance maker and margin concerns outweighed a quarterly earnings beat.

Whirlpool posted third-quarter adjusted earnings on Wednesday of $5.45 a share, well ahead of estimates of $4.27, according to FactSet. Net sales were $4.93 billion, above Wall Street’s call for $4.79 billion, and rising from the year-ago quarter, “driven by North America share gains and industry strength, partially offset by normalizing promotional environment,” the company said in a press release.

The home appliances company also reaffirmed its full-year net sales guidance of $19.4 billion but revised its adjusted earnings forecast to $16 a share from a prior range of $16 to $18. Raymond James analysts Sam Darkatsh and Joshua Wilson, who rate shares at Outperform, weighed in on the earnings report.

“ Whirlpool’s headline 3Q EPS meaningfully benefited from tax, while price/mix headwinds and lower net cost benefits drove margin below expectations,” they wrote in a report Wednesday after the earnings were released. “4Q appears to beShares were down 13% to $109.37, putting them on pace for their largest percent decrease since March 23, 2020, when they dropped 14%, according to Dow Jones Market Data.

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