Whirlpool (WHR) stock plummeted on Thursday after the appliance maker warned that increased prices are on the horizon. Chief Financial Officer Roxanne Warner pointed to the war in Iran, which she claimed has tanked consumer confidence. As a result, the company expects a “recession-level industry decline.”
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The war in Iran has stressed oil supplies in the U.S., which has resulted in increased gas prices. While consumers largely feel this at the pump, it affects the overall cost of living as well. That’s due to increased shipping costs as companies pay more for fuel. In addition to this, the struggling housing market has also put extra pressure on consumers’ finances, preventing them from purchasing Whirlpool’s higher-end products.
Investors will note that Whirlpool’s price increase and economic warning came alongside the company’s most recent earnings report. The company posted adjusted earnings per share of -56 cents and revenue of $3.27 billion. Both of these were below Wall Street’s estimates of 38 cents per share and revenue of $3.44 billion. The earnings miss and economic concerns will lead Whirlpool to introduce a roughly 4% price increase in July.
Whirlpool Stock Movement Today
Whirlpool stock was down 12.88% on Thursday, extending a 33.03% year-to-date drop. The shares have also fallen 31.48% over the past 12 months.
WHR stock trading activity today was elevated, as some 5 million shares changed hands. For comparison, the company’s three-month average daily trading volume was about 2.41 million shares.
Is Whirlpool Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Whirlpool is Hold, based on one Buy, five Hold, and two Sell ratings over the past three months. With that comes an average WHR stock price target of $54, representing a potential 13.4% upside for the shares. These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
