On Thursday, Raymond (NS:RYMD) James reaffirmed a Market Perform rating for Whirlpool Corporation (NYSE:NYSE:WHR), as the stock trades near its 52-week high of $130.39. According to InvestingPro data, the stock has surged 14.3% in the past week, with technical indicators suggesting overbought conditions.
Analysts at Raymond James reviewed the latest U.S. appliance industry wholesale unit volume shipments, which were reported to have increased by 4% year-over-year in the fourth quarter (Q4) of 2024. Upon adjustment for the calendar, the growth estimate stands at approximately 1%.
The Association of Home Appliance Manufacturers (AHAM) disclosed that shipments of core major appliances saw a year-over-year rise of 4% in Q4 2024. In detail, shipments of freezers experienced the highest growth, while the other five categories also demonstrated positive growth. Monthly breakdowns showed that October had a 2.3% increase, November 4.0%, and December 5.3% in unit shipments.
Analysts noted that Whirlpool's guidance for the year 2024 assumed flat year-over-year industry shipments for both the fourth quarter and the full year. However, AHAM reported a 2% increase for the entire year. InvestingPro analysis indicates that Whirlpool maintains a robust dividend yield of 5.4% and has consistently paid dividends for 54 consecutive years, despite forecasted revenue challenges. The daily shipment comparison is expected to be easier in the first quarter of 2025, with one additional shipping day in March.
Whirlpool's stock performance could also be influenced by the pricing environment, as competitors have announced price increases for the first quarter of 2025. Meanwhile, major appliance Producer Price Index (PPI) data showed a sequential decrease in December, but this preliminary number could be subject to revisions.
In terms of industrial production, the Federal Reserve's previous reports indicated a decrease of 2.4% year-over-year in October and a slight increase of 0.6% in November. The December industrial production data is anticipated to be released on January 17, which could provide further insights into the industry's performance.
Raymond James analysts have set their fourth quarter 2024 adjusted earnings per share (EPS) estimate for Whirlpool at $4.30, which aligns with the consensus. This estimate assumes a 2% year-over-year decline in North American Major Domestic Appliance (MDA) sales and volumes. With Whirlpool's next earnings report due on January 29, 2025, investors can access comprehensive analysis and additional insights through InvestingPro's detailed research reports, which cover over 1,400 US stocks.
The company remains focused on strategic cost reductions and debt management, with plans to address $1.8 billion in current maturities due in 2025. These recent developments underscore Whirlpool's commitment to its long-term growth strategy and shareholder value.
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