Topline
Whirlpool’s stock plunged toward a 17-year low in premarket trading on Thursday, after the appliance maker said the Iran war created a “recession-level industry decline” while reporting earnings that fell well below Wall Street’s expectations.
Executives for the whirlpool maker cited a “rapid deterioration” in economic conditions during the Iran war.
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Key Facts
Shares of Whirlpool plummeted 21% to just over $43 in premarket trading on Thursday, pacing what would be the stock’s lowest level in intraday trading since 2009.
Whirlpool on Thursday reported first-quarter revenue of $3.2 billion and a loss of $0.56 earnings per share, missing projections of $3.4 billion and a gain of $0.38 earnings per share, according to FactSet.
The company reduced its full-year earnings guidance to between $3 and $3.50, cutting its projections nearly in half after earlier estimates of about $6 a share.
The appliance maker said the Iran war resulted in “recession-level industry decline” in the U.S. and cited record-low consumer confidence in late February and March, as CEO Marc Bitzer said the company “acted decisively to address pricing and costs in the face of rapid deterioration in macroeconomic conditions.”
Whirlpool said it restored profitability after raising prices by at least 10% in North America, where revenue declined 7.8% year-over-year, and by ramping up cost-cutting efforts.
Surprising Fact
Betting odds of a recession this year dropped to an all-time low last week as the Trump administration carried out ceasefire talks with Iran, and as federal data pointed to a more resilient economy. The broader stock market recorded growth in April not seen in years: The Dow Jones Industrial Average rose 7.1%, its best month since November 2024, and the S&P 500 soared 10.4% in its best month since November 2020, while the Nasdaq surged 15.3% in the index’s best month since April 2020.
Key Background
Consumer sentiment data published by the University of Michigan dropped to an all-time low in April, falling further from March’s low reading. Americans increasingly expressed worries the Iran war would disrupt consumer prices and their personal finances, the report found at the time, with respondents indicating they expected costs to rise 4.8% over the next year. Assessment of personal finances plunged 11% as consumers expressed a “substantial” increase in concerns over high prices and weaker asset values, with some blaming the Iran war for “unfavorable changes” to the economy. Economic conditions have largely recovered as ceasefire talks persist, despite inflation rising by nearly a full percentage point.