Yahoo Finance Whirlpool (WHR) Progresses Well With Portfolio Transformation
Whirlpool Corporation WHR has been making smart moves to enrich customer satisfaction and drive profitability. The company has been progressing well with its portfolio transformation and cost-saving initiatives. In the latest developments, management informed that the company has concluded its transaction with Arcelik. Markedly, this move highlights an important step in the company’s portfolio transformation, thus providing opportunities to boost value.
This transaction resulted in a new European appliance company combining Whirlpool's European major domestic appliance division with Arcelik's key domestic appliances, consumer electronics, air conditioning and small domestic appliance businesses. While the company currently owns 25% of the new entity, called Beko Europe B.V., Arcelik owns 75%. The company is retaining ownership of InSinkErator and its EMEA KitchenAid small with the key domestic appliance business. The KitchenAid small domestic appliance business is likely to be a key driver.
The aforesaid deal will result in a higher-margin business and growth. The transaction is likely to produce more than $750 million in net present value of future cash flow value, alongside unlocking $200-$300 million of incremental free cash flows in 2025.
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The new company will be poised to boost consumers’ value through attractive brands, sustainable manufacturing, product innovation and services. Beko Europe B.V. will generate combined revenues of about €5.52 billion, based on 2023 results. In addition, the company unveiled that it has completed its earlier-announced sale of its Middle East and North Africa business to Arçelik.
What Else?
Whirlpool is on track with early and decisive actions to protect margins and productivity amid ongoing supply-chain constraints and inflationary pressures. It has implemented cost takeout actions, including curtailing structural and discretionary costs, capturing raw material deflation opportunities, effectively managing working capital and syncing supply chain and labor levels with demand.
Additionally, Whirlpool has been witnessing positive performance due to improved supply-chain execution and the successful introduction of new products. With a strategic focus on product innovation, the company has increased new product introductions by 25% compared with the 2022 level, leading to notable gains in premium product market share.
Over the past month, shares of this Zacks Rank #3 (Hold) company have increased 7.8% compared with the industry’s 8.1% growth.
Eye Key Consumer Discretionary Picks
Some better-ranked companies are G-III Apparel Group GIII, Royal Caribbean RCL and lululemon athletica LULU.
G-III Apparel sports a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
GIII Apparel has a trailing four-quarter earnings surprise of 541.8%, on average. The Zacks Consensus Estimate for GIII’s fiscal 2024 earnings per share (EPS) indicates an increase of 33% from the year-ago period’s reported level.
Royal Caribbean sports a Zacks Rank of 1, at present. RCL has a trailing four-quarter earnings surprise of 28.3%, on average.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates increases of 57.7% and 187.9%, respectively, from the year-ago period’s reported levels.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank #2 (Buy), at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 18.2% and 22.8%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 9.2%, on average.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Whirlpool Corporation (WHR) : Free Stock Analysis Report
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G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report
