Whirlpool: Is there more upside to WHR shares?
YTD WHR shares up 108% vs. the 57% gain in S&P 500 Household Durables Index (all data based on Friday Nov 16 closing prices).
US Economic Malaise
Asian Demand Remains Muted
US Housing Rebound
LA Growth Opportunities
‘Kitchen Sprawl’ Trend
Significant Gross Margin Opportunity
Rationalized business model positioned to generate improved profit margins with increased demand; expected $200M benefit in 2012 and 2013. Management guidance (10/23) Raised to $6.90 – $7.10 EPS and FCF of $125M – $175M; 5.5%-6% EBIT margin, up 300bps with a medium term opportunity to 8% (compared to the 10.9% EBIT median peer EBIT margin) along with 5%-7% revenue growth and 10%-15% EPS growth.
See my write up in Value Retail News here.