WHR - Why Whirlpool Stock Went Into a Downward Spiral Today
2024-04-25 14:30:00 ET
Shares of global consumer appliance company Whirlpool (NYSE: WHR) sank to 52-week lows on Thursday after the company reported financial results for the first quarter of 2024. As of 1:30 p.m. ET, Whirlpool stock was down almost 12%.
Whirlpool is facing multiple headwinds. First, the company has a lot of debt. Second, inflation has increased its cost of manufacturing. And third, home-appliance purchases have slowed due to a slow housing market, meaning that management has to lower prices to stimulate sales. This is a bad combination.
Whirlpool's Q1 net sales were down everywhere except for Latin America, resulting in a 3% year-over-year drop to $4.5 billion. The company also had ongoing earnings per share (EPS) of $1.78, which were down 33%, reflecting the higher costs coupled with lower-than-ideal selling prices.
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Why Whirlpool Stock Went Into a Downward Spiral Today