Whirlpool slides as Q3 earnings miss estimates

Whirlpool slid in pre-market trade after its third-quarter earnings missed estimates and the company cuts its earnings guidance for full-year 2016.

Net earnings came in at $238m, or $3.10 a share, up from $235m, or $2.95 a share in the third quarter a year ago.

Adjusted earnings per share came in at $3.66, which was below consensus expectations of $3.86, on revenue of $5.25bn, down from $5.28bn the year before and falling short of forecasts of $5.32bn.

Chairman and chief executive Jeff M Fettig said: “In a challenging external environment, we delivered record third-quarter ongoing earnings per share by leveraging our portfolio of leading brands, innovative new products and a continued focus on cost productivity. The fundamentals of our business are strong, and as a result of our operational execution we have delivered earnings per share growth of 18% year-to-date.

"We remain focused on creating value for our shareholders and returning cash through our share repurchase and dividend programs."

The maker of home appliances said adjusted earnings per share from ongoing operations for 2016 are expected to come in between $14.00 and $14.25, while full-year 2016 earnings per share are forecast between $11.50 and $11.75, down from a previous range of $12.00 to $12.50.

Whirlpool said the changes are primarily related to demand softness in the US and the UK, as well as the continued devaluation of the pound.

At 1225 BST, the shares were down 4.3% in pre-market trade to $163.10.