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Whirlpool Raises Dividend by 12% & Boosts Share Buybacks

Whirlpool Corporation (WHR) is a leading kitchen and laundry appliance business with about $20 billion in annual sales, 77,000 employees, and 59 manufacturing and technology research centers in 2019.

The company generated 30% of its revenue from refrigeration, 29% from laundry, 23% from cooking, 9.6% from dishwashing, and 5% from spare parts and warranties during the first quarter of 2021. In terms of geographic diversification, the company generated 57% of its revenue from North America, 22% from EMEA, 14% from Latin America and 8% from Asia.

Whirlpool Tops Q1 Earnings Estimates

Whirlpool recently reported first-quarter revenue that rose by 23.8% to $5.36 billion, beating consensus estimates by $460 million, with non-GAAP earnings of $7.20 per share, beating consensus estimates by $1.80 per share. At the same time, the company raised FY 2021 GAAP EPS guidance to $23.10 to $24.10 per share.

Management believes that the strong first-quarter financial results demonstrate its agility and resilience in dealing with component shortages and inflationary pressure. Sustained strong consumer demand and its recent cost-based pricing actions provided the confidence to significantly raise the full-year guidance.

Analysts also reacted favorably to the strong first-quarter earnings. For example, RBC Capital said that near-term dynamics remain favorable, although long-term risks around margin normalization persist and the debate about “peak earnings’’ continues.

The company raised its quarterly dividend by 12% to $1.40 per share, which represents a 2.4% forward yield. The dividend is payable on June 15, 2021, to shareholders on record as of May 21, 2021. In addition, the board of directors authorized an additional $2 billion share repurchase program.

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