Raymond James Sticks With Neutral Whirlpool Stance As Appliance Sales Drop

The Association of Home Appliance Manufacturers (AHAM) reported February data that showed wholesale unit shipments of the core six appliances fell 8 percent year-over-year. Raymond James said the figures partly reinforce its neutral stance on Whirlpool Corporation WHR.

The Analyst

Raymond James' Sam Darkatsh maintains a Market Perform rating on Whirlpool.

The Thesis

Among the core six appliances, dryers saw the biggest drop in year-over-year sales, followed by washers, dishwashers, freezers, cooking and refrigerators, Darkatsh said in a Friday note.

January shipments were negative 7 percent year-over-year, and three-year stacked daily shipments moderated from 11 percent in January to 2 percent in February, the analyst said. 

The research firm continues to estimate Whirlpool's North America unit shipments for the first quarter —scheduled for April 22 — at negative 1.3 percent, or roughly in-line with the consensus estimate of negative 1.5 percent.

This is not comparable with AHAM's recent data readouts, as it includes selling activity on small appliances and performance in Canada.

Raymond James is modeling for Whirpool to earn $3.13 per share in the first quarter, which is north of the consensus estimate of $2.91 per share, Darkatsh said. The first quarter also represents an easy market share comparison for Whirlpool and will be followed by an Investor Day presentation on May 23, he said. 

Price Action

Shares of Whirlpool were trading higher by 1.2 percent Monday morning.

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