Whirlpool (WHR - option chain) stock is trading lower today after the company reported third-quarter earnings this morning, posting a profit of $79 million, or $1.02 per share. Excluding a $1.20 per share expense related to a plea deal on price-fixing charges, WHR earned $2.22 per share on revenue of $4.52 billion. Analysts had forecast earnings of $1.76 per share on revenue of $4.49 billion. However, shares of the stock are falling in early trading after WHR cut its full-year US shipments growth forecast to 3% from 5%. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on WHR.

Continue reading Whirlpool Beats Q3 Estimates but Cuts Growth Forecast

Whirlpool Beats Q3 Estimates but Cuts Growth Forecast originally appeared on BloggingStocks on Wed, 27 Oct 2010 12:50:00 EST. Please see our terms for use of feeds.

Continue reading Whirlpool Having Problems After Q2 Release

Whirlpool Having Problems After Q2 Release originally appeared on BloggingStocks on Tue, 20 Jul 2010 16:40:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Coinstar Inc. (CSTR) shares surged following stronger-than-expected Q1 earnings driven by DVD rentals.
• Humana Inc. (HUM) shares traded lower despite the report of better-than-expected earnings for Q1.
• IMAX Corp. (IMAX) reported strong Q1 results that easily topped consensus estimates, but shares declined.
• Kellogg Co. (K) topped Q1 earnings expectations and announced a share buyback program.
• Office Depot Inc. (ODP) Q1 earnings fell short of consensus estimates and same-store sales declined.

Continue reading Earnings Highlights: IMAX, Kellogg, Sprint, 3M, UPS, Viacom, Visa and More

Earnings Highlights: IMAX, Kellogg, Sprint, 3M, UPS, Viacom, Visa and More originally appeared on BloggingStocks on Sat, 01 May 2010 15:40:00 EST. Please see our terms for use of feeds.

All I can say is, wow! Whirlpool Corporation (WHR) is having a spectacular trading session. I'm not sure where the stock will settle out at by the end of the day, but let me tell you, what I'm seeing on my screen at the time of this writing is incredibly impressive. The stock is up almost $12, or over 11%. Volume is robust.

The maker of various appliances under trademarks such as Maytag and KitchenAid has been a great stock to hold over the last twelve months. I mean, just look at the one-year chart. If that doesn't scream bullish, nothing does.

Continue reading Whirlpool Wows the Market with Q1 Release

Whirlpool Wows the Market with Q1 Release originally appeared on BloggingStocks on Mon, 26 Apr 2010 16:00:00 EST. Please see our terms for use of feeds.

This is the third screening to find value among Fortune's 25 corporate world leaders that have demonstrated an ability to regenerate themselves from within. The list has been cut to 18 and will be cut further here.

The methodology of using basic stock data points to identify potential value investments only sets the stage for success -- it assures nothing. While it is true that paying less is better than paying more and getting a higher yield is better than less, this gives you a scant picture of what is in people's hearts and minds, and that is harder to judge. Like the weather, no matter the predictions, you may not find out it is raining until you are standing in it. Regardless, it should be advantageous to start with good stock (pun intended) before you take to whittlin', and that we have.

Continue reading Serious Money: Fortune's 25 leaders, 18 remain

Serious Money: Fortune's 25 leaders, 18 remain originally appeared on BloggingStocks on Wed, 02 Dec 2009 13:40:00 EST. Please see our terms for use of feeds.

Yesterday I started a review of 25 companies that Fortune deemed most successful according to their peers in developing quality leadership. Today I review the remaining 20, searching to find the ones that might be worth investing in.

Price-to-book (from 11/27/09) was used as the first value screen. The theory being from a value investor's perspective that buying for a price at or near the break-up value of the company provides downside protection. Of course that is easier said than done.

Continue reading Serious Money: Fortune's 25 leaders, now 20

Serious Money: Fortune's 25 leaders, now 20 originally appeared on BloggingStocks on Tue, 01 Dec 2009 18:00:00 EST. Please see our terms for use of feeds.

Last week, under the guise of betting on America, Warren Buffett and his Berkshire Hathaway (BRK.A) made an offer to buy all outstanding shares of Burlington Northern (BNI) for a significant premium.

In making the announcement, Buffett confidently claimed that rail would play a big role in the recovery of the economy. What he did not say was that this was a bet on the U.S. dollar.

Continue reading Five winners of a weak dollar: SBUX, PEP, AAPL

Five winners of a weak dollar: SBUX, PEP, AAPL originally appeared on BloggingStocks on Sat, 14 Nov 2009 17:00:00 EST. Please see our terms for use of feeds.

The collapse of the domestic housing market crushed businesses that made things that went into the building boom. One of the biggest makers of stuff for homes is Whirlpool (WHR). During the real estate bull market, Whirlpool was firing on all cylinders. But when the market crashed, so did WHR stock.

Since bottoming earlier this year, WHR has made a big recovery. That recovery was based on a recovery in the domestic real estate market. What has yet to be priced into the stock is a boom in overseas shipments.

Continue reading Weak dollar winner #1: Whirlpool (WHR)

Weak dollar winner #1: Whirlpool (WHR) originally appeared on BloggingStocks on Sat, 14 Nov 2009 11:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• AirTran Holdings Inc. (NYSE: AAI) reported its third consecutive quarterly profit and will increase capacity.
• Amazon.com Inc. (NASDAQ: AMZN) shares soared after it reported very strong Q3 numbers.
• Apple Inc. (NASDAQ: AAPL) reported stellar Q4 results, driven by the popularity of Macs and iPhones.
• BlackRock Inc. (NYSE: BLK) Q3 earnings soared, due in part to a tax benefit, and assets managed grew.
• Broadcom Corp. (NASDAQ: BRCM) revenue surged sequentially but note the would be flat going forward.
• Caterpillar Inc. (NYSE: CAT) beat Q3 earnings expectations and shares rose though revenue slumped.

Continue reading Earnings highlights: Amazon, Apple, Caterpillar, Hershey, McDonald's, UPS ...

Earnings highlights: Amazon, Apple, Caterpillar, Hershey, McDonald's, UPS ... originally appeared on BloggingStocks on Sat, 24 Oct 2009 14:20:00 EST. Please see our terms for use of feeds.

Wall Street watchers can be excused for feeling a little whipsawed this week. After watching stocks lose ground early in the week, they roared back Thursday, riding high on a bevy of upbeat earnings reports. That enthusiasm remains partially on display this morning with two of the three major U.S. stock indexes showing a positive opening ahead of the morning bell.

At about 7 a.m. ET, the Nasdaq Composite Index and S&P 500 were slightly higher, while the Dow Jones industrial average was down by about 4 points. The Dow gained 1.3% Thursday to close the session at 10,081.31, led by the strong earnings reports from five of the benchmark index's 30 component stocks.

Continue reading Before the bell: Earnings enthusiasm shows signs of slipping

Before the bell: Earnings enthusiasm shows signs of slipping originally appeared on BloggingStocks on Fri, 23 Oct 2009 07:30:00 EST. Please see our terms for use of feeds.

Continue reading Whirlpool knows emerging markets are appliances' new frontier

Whirlpool knows emerging markets are appliances' new frontier originally appeared on BloggingStocks on Tue, 11 Aug 2009 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Whirlpool knows emerging markets won't be down-and-out forever

Whirlpool knows emerging markets won't be down-and-out forever originally appeared on BloggingStocks on Mon, 13 Apr 2009 17:20:00 EST. Please see our terms for use of feeds.

It's about that time again: Pepsi vs. Coke. No, not another taste test or another Battle of the Brands. It's time for the next quarterly results from these two soft drink titans.

Analysts surveyed by Thomson Reuters anticipate that PepsiCo Inc. (NYSE: PEP), global beverage and snack food giant, will report fourth-quarter earnings this week that are 9.1% higher that a year ago, or $0.88 per share. Revenue is expected to total $12.8 billion, which is 3.9% higher than last year. For the full year, the profit is expected to be $3.67 per share on revenue of $43.4 billion, up from $3.38 per share on $39.5 billion in 2007. PepsiCo's earnings met or beat estimates in four of the past five quarters, but missed by only two cents per share in the third quarter. The consensus recommendation of analysts remains to buy PEP. The share price fell to a 52-week low in January and is now 24.4% lower than it was a year ago. During the fourth quarter, PepsiCo declared a $0.42 per share quarterly dividend, agreed to acquire a Spitz International, and announced investments in China and Mexico.

Continue reading The week in preview: Coke versus Pepsi

The week in preview: Coke versus Pepsi originally appeared on BloggingStocks on Sun, 08 Feb 2009 12:30:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) reported a narrower Q3 net loss and reaffirmed its outlook.
• Barclays (NYSE: BCS) earnings and dividend prospects resulted in an analyst's downgrade.
• Burger King Holdings Inc. (NYSE: BKC) posted its 19th straight quarter of positive growth.
• Choice Hotels International Inc. (NYSE: CHH) better-than-expected Q3 report led to an upgrade.
• Comcast Corp. (NASDAQ: CMCSA) reported strong Q3 numbers and maintained its revenue outlook.
• DreamWorks Animation SKG Inc. (NYSE: DWA) better-than-expected Q3 results driven by Kung Fu Panda.
• Exxon Mobil Corp. (NYSE: XOM) reported another record profit in Q3 driven by record high fuel prices.
• Garmin Ltd. (NASDAQ: GRMN) reported a better-than-expected Q3 profit and offered guidance.
• Hercules Inc. (NYSE: HPC) posted lower Q3 earnings and anounced [regulatory] approval of its buyout.
• Janus Capital Group Inc. (NYSE: JNS) weaker-than-expected results led to an analyst's downgrade.
• Legg Mason Inc. (NYSE: LM) swung to a smaller-than-expected Q2 net loss and shares soared.
• Motorola Inc. (NYSE: MOT) dismal Q3 results managed to beat low earnings expectations.
• Office Depot (NYSE: ODP) Q3 results included lower revenue and a net loss due to economic conditions.
• Qwest Communications International Inc. (NYSE: Q) unimpressive Q3 numbers fell short of estimates.
• Sun Microsystems (NASDAQ: JAVA) swung to a greater-than-expected net loss due in part to competition.
• Texas Roadhouse Inc. (NASDAQ: TXRH) missed Q3 estimates and warned of flat full-year earnings.
• Valero Energy Corp. (NYSE: VLO) strong Q3 results included a gain from a sale of a refinery.
• Visa Inc. (NYSE: V) beat Q4 earnings expectations after adjustment for litigation-related charges.
• Whirlpool Corp. (NYSE: WHR) fell short of revenue estimates and announced job cuts.

Continue reading Earnings highlights: Exxon, Motorola, Barclays, Burger King, Comcast, Visa, and others

Earnings highlights: Exxon, Motorola, Barclays, Burger King, Comcast, Visa, and others originally appeared on BloggingStocks on Sat, 01 Nov 2008 09:40:00 EST. Please see our terms for use of feeds.

Disney (NYSE: DIS) closed at $28.26 Monday. DIS is expected to report Q4 EPS in early November. DIS November option implied volatility of 54 is above it 26-week average of 31 according to Track Data, suggesting larger movement.

Whirlpool (NYSE: WHR) closed at $70.10 Monday. WHR is scheduled to report Q3 EPS in late October. WHR overall option implied volatility of 83 is above its 26-week average of 44 according to Track Data, suggesting larger price movement.

Petrobras (NYSE: PBR) closed at $34.20 Monday. Crude oil futures are recently up 3.89% to $91.23 according to Bloomberg. PBR October option implied volatility is at 167; November is at 127; above its 26-week average of 48 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Disney volatility elevated; shares near 30-month low originally appeared on BloggingStocks on Tue, 07 Oct 2008 09:05:00 EST. Please see our terms for use of feeds.

CNNMoney reports that General Electric Co. (NYSE: GE) is selling its appliance business. Goldman Sachs Group (NYSE: GS) is running the auction for this maker of refrigerators, microwaves and dishwashers and expects to receive between $5 billion and $8 billion for this $7 billion division of GE's $17.7 billion (2007 revenues) Industrial business unit.

I have been advocating that GE shed its ancillary businesses and this is one that makes sense to sell. I have taught several cases on the appliance industry and one of them highlights the many problems that GE's Appliance business suffered from in the 1990s thanks to the growing bargaining power of mass merchandisers, significant competition from Chinese manufacturers, and some internally inflicted wounds.

If GE Appliances was valued at the same Price/Sales ratio as Whirlpool (NYSE: WHR) -- 0.3 -- it would fetch $3.5 billion. The appliance industry average price/sales ratio is 0.7 -- which would yield GE $4.9 billion. So it looks like GE believes its appliance business is worth well more than the average appliance industry competitor. I applaud the idea of selling GE Appliances but the real gem of GE is its infrastructure business which is capitalizing on the growth of developing countries like China and India.

Continue reading GE to sell its appliance business

GE to sell its appliance business originally appeared on BloggingStocks on Wed, 14 May 2008 19:40:00 EST. Please see our terms for use of feeds.

For the purposes of this examination, let's set aside the fact that you can find reliable clinical research that shows that tobacco smokers cost the insurance industry less over their lifetimes than svelte nonsmokers do. This is simply due to the fact that we tend to die sooner. But that's a matter of insurance industry/government/pharmaceutical hijinx, to possibly discuss another time.

That aside, the item I'm bringing forward today is how the issue of lying smokers should be pursued by Whirlpool Corp.(NYSE: WHR). I'll not take issue against Whirlpool's insurance plan demanding a different level of premium payment from smokers. I'll not take issue against Whirlpool asking smokers to document their participation in the addiction. I'll not take issue against Whirlpool taking action against smokers who lied when claiming that they don't smoke. What I do argue against is the ludicrous notion that Whirlpool employees have turned on one another. It appears that's what the company expects us to believe.

Whirlpool management wants you to believe that they had 39 instances of one employee reporting another for serving their nicotine addiction in violation of what should be a confidential declaration of status. Whirlpool expects you to believe that these company "rats" know which smokers lied on their paper work and which didn't. Whirlpool expects you to believe that all policy violators are of hourly status and that violations by management staff either don't exist or aren't yet worth pursuing. Whirlpool expects us to believe that the company itself wasn't at the root of this all.

How shall Whirlpool handle its lying smoker issue? originally appeared on BloggingStocks on Sun, 27 Apr 2008 10:40:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Jefferies downgraded shares of Thornburg Mortgage (NYSE: TMA) to Hold from Buy to reflect the ongoing dislocation of the mortgage markets and lowered their target to $3.75 from $14. While they believe Thornburg will probably survive its current liquidity crisis, they think the company's capital structure will be impaired further.
  
• JP Morgan downgraded Whirlpool (NYSE: WHR) to Underweight from Neutral, citing valuation, higher steel prices, the difficult macro environment and competition.
  
• Stephens cut Jackson Hewitt (NYSE: JTX) to Equal Weight from Overweight to reflect the company's recent results and concerns over the issues that have impacted the basic business.

• Merrill lowered Bank of Montreal (NYSE: BMO) to Sell from Neutral.
  
• Lehman downgraded PDL BioPharma (NASDAQ: PDLI) to Equal Weight from Overweight.
  
• Friedman Billings downgraded Tessera (NASDAQ: TSRA) to Market Perform from Outperform.

Analyst downgrades: Thornburg Mortgage, Whirlpool, Jackson Hewitt originally appeared on BloggingStocks on Wed, 05 Mar 2008 11:53:00 EST. Please see our terms for use of feeds.

Continue reading Know how the companies you own make money

Know how the companies you own make money originally appeared on BloggingStocks on Tue, 04 Mar 2008 17:21:00 EST. Please see our terms for use of feeds.

General Electric Company (NYSE: GE)'s Industrial segment is worth between $13.1 billion and $16.1 billion down 35.1% at the low end since July when I estimated it was worth $20.2 billion and $21.7 billion.

GE Industrial sells products including consumer appliances, industrial equipment and plastics, and related services. It also provides asset management services for the transportation industry. Industrial revenues were about the same in 2007 compared with 2006 as lower volume ($0.5 billion) was offset by the effects of the weaker U.S. dollar ($0.3 billion) and higher prices ($0.2 billion).

Based on GE Industrial profit of $1.41 billion, here are the range of valuations based on the Price/Earnings ratios of the following peer companies -- which declined substantially since last July:

• Whirlpool Corp. (NYSE: WHR) P/E: 11.4 (July: 16.2): $13.1 billion
• Electrolux AB (ADR) (OTC: ELUXY) P/E: 9.3. (July: 15.2): $16.1 billion

Valuing GE Industrial originally appeared on BloggingStocks on Wed, 27 Feb 2008 17:20:00 EST. Please see our terms for use of feeds.