Whirlpool Corporation reported lower FY2014 guidance after Monday’s closing bell. Here’s what the news means for mutual fund investors.
Inside the News
FY2014 Outlook
The company expects to see GAAP earnings between $8.00 and $8.20 per share. Non-GAAP earnings are expected to be between $10.90 and $11.10 per share. Analysts expect to see earnings of $11.65 per share.
FY2015 Outlook
The company expects to see GAAP earnings between $10.75 and $11.75 per share. Non-GAAP earnings are expected to be between $14.00 and $15.00 per share. Analysts expect to see earnings of $14.50 per share.
Consevative Outlook for a Stock at All-Time Highs
The stock has been trading at all-time highs, so we view this outlook as conservative. It is notable to mention that this company has little competition in the household appliance industry. With this outlook, the stock may move sideways.
Given Whirlpool’s outlook, fund managers may choose to add to their stake in the company, or may let the stock run.
Mutual Funds to Watch
Investors interested in WHR may consider one of the funds listed below. The three funds below have the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| VIMAX | Vanguard Mid Cap Index | 1.74% |
| VTSMX | Vanguard Total Stock Market Index | 1.67% |
| VFINX | Vanguard 500 Index | 1.06% |
The Bottom Line
The funds above are a great way for investors to gain exposure to a diverse bundle of securities and industries. Investors interested in WHR may also be interested in General Electric (GE).
Shares of WHR are up 14% YTD.