Citing a third consecutive year of record ongoing earnings per share, Whirlpool Corporation this evening has posted fourth quarter earnings that beat Wall Street expectations on both earnings and revenue fronts.
Whirlpool’s 4th quarter non-GAAP earnings per share clocked in at $6.64 beating the street by $0.23 while their GAAP earnings per share of $7.77 beat analysts expectations by $1.99 per share. The company’s quarterly revenue of $5.79-billion also beat Wall Street by $150-million.
While Whirlpool’s stock closed the business day ahead of the report up by $5.98 to $212.40, the stock had fallen to $200 per share in after hours trading, down by 6.2-percent, rebounding a bit to to $204 per share within 90-minutes of the close.
Marc Bitzer, Chairman and Chief Executive Officer of the Benton Harbor-based appliance giant says, “Despite a challenging environment in 2020, we continued to deliver against our long-term strategy and reported our third consecutive year of record ongoing earnings per share,” adding, “As we enter into 2021, we continue to see signs of economic recovery – such as positive demand and encouraging structural housing trends – and remain well-positioned to drive sustained shareholder value over the long term.”
Whirlpool officials say they delivered on long-term value creation targets with very strong fourth quarter and full year results, sharing these key highlights:
- Q4 net sales growth of 7.7-percent and organic net sales (non-GAAP) growth of 10.3-percent, driven by strong consumer demand
- Very strong Q4 GAAP net earnings margin of 8.6-percent (up 320 basis points) and ongoing (nonGAAP) EBIT margin of 11.3-percent (up 410 basis points), with positive EBIT and significant margin expansion in all regions
- Solid full-year GAAP earnings per diluted share of $17.07 and record ongoing earnings per diluted share (non-GAAP) of $18.55, exceeding guidance
- Significant cash generation for full-year 2020; cash provided by operating activities of $1.5 billion and free cash flow of $1.25 billion, with positive cash flow in North America, Latin America and EMEA
- 2021 outlook includes earnings per diluted share of $17.80 to $18.80 on a GAAP basis and $19.00 to $20.00 on an ongoing basis; cash provided by operating activities of ~$1.55 billion and free cash flow of $1 billion or more
Jim Peters, Chief Financial Officer of Whirlpool says, “We ended 2020 in a position of strength due to the early, decisive actions we took at the onset of the year to sustain operating margins and protect liquidity,” while adding, “We significantly strengthened our balance sheet and continued to return cash to our shareholders, while delivering record ongoing earnings per share, ongoing EBIT margins and free cash flow. Looking ahead, we are confident that we will continue to deliver on our long-term financial goals and create further value for our shareholders.”
The leading kitchen and laundry appliance company in the world also shared these highlights in this evening’s report:
QUARTERLY & FULL-YEAR HIGHLIGHTS
- Delivered Q4 GAAP and ongoing (non-GAAP) earnings per diluted share of $7.77 and $6.64, respectively, driven by exceptional execution of go-to-market and cost takeout actions
- Solid full-year GAAP net earnings margin of 5.6-percent (down 20 basis points) driven by increased restructuring costs
- Record full-year ongoing (non-GAAP) EBIT margin of 9.1-percent (up 220 basis points), driven by very strong execution of go-to-market initiatives and $500 million cost takeout program
- Full-year EBIT positive in EMEA as strategic actions continue to drive progress towards long-term goals
- Strong liquidity position with a cash balance of $2.9 billion as of December 31, 2020; repayment of approximately $1.7 billion of outstanding short-term debt resulting in gross debt leverage of 2.3x
The company filed these updates from their Regional Review:
North America
- Solid revenue performance driven by positive consumer trends
- Record fourth-quarter EBIT, with EBIT margin of 18.1-percent, compared to 13.3-percent in the same prior-year period, driven by go-to-market actions and strong cost discipline
Europe, Middle East and Africa
- Demand strength drove solid volume growth year-over-year, with double-digit growth in key countries
- Fourth-quarter EBIT margin of 2.8-percent, compared to 0.9-percent in the same prior-year period, as cost takeout actions and increased demand offset unfavorable currency
Latin America
- Organic net sales growth of 28-percent driven by Brazil industry growth
- Fourth-quarter EBIT margin of 12.1-percent, compared to 5.3-percent in the same prior year period, as positive price/mix and increased demand offset unfavorable currency
Asia
- Solid India results led by demand recovery
- China delivered strong EBIT improvement driven through cost productivity actions and Whirlpool branded share gains
FULL-YEAR 2021 OUTLOOK
Strong 2021 outlook delivering on long-term financial goals:
- Full-year 2021 net sales increase of ~6 percent (the impact of currency on net sales for future periods is not included)
- GAAP earnings per diluted share of $17.80 to $18.80
- Ongoing earnings per diluted share of $19.00 to $20.00
- GAAP and adjusted tax rate (non-GAAP) of 24- to 26-percent
- Cash provided by operating activities of approximately $1.55 billion
- Free cash flow of $1 billion or more
