{"id":15134,"date":"2012-11-21T22:03:49","date_gmt":"2012-11-22T06:03:49","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=15134"},"modified":"2012-11-21T22:03:49","modified_gmt":"2012-11-22T06:03:49","slug":"whirlpool-optimistic-about-a-recovery-in-structural-demand","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2012\/11\/21\/whirlpool-optimistic-about-a-recovery-in-structural-demand\/","title":{"rendered":"Whirlpool Optimistic About A Recovery in Structural Demand"},"content":{"rendered":"

This is an excerpt from an article I originally published on Seeking Alpha on November 5, 2012. Click here to read the entire piece<\/a>.)<\/strong><\/p>\n

Back in February, I reviewed the latest earnings report from Whirlpool<\/a> (WHR) and concluded that the stock still had upside but it was better to buy on a dip. {snip}<\/p>\n


\n
\"Whirlpool's<\/a>
Whirlpool's roller coaster 2012 seems to be ending on a high note<\/figcaption><\/figure>
\nSource: FreeStockCharts.com<\/a><\/strong>
\n<\/center><\/p>\n

{snip}<\/p>\n

I believe the main story for Whirlpool this year was margin expansion. {snip} <\/p>\n

Next year’s story will have to be sales growth that leverages this margin expansion. This will require, for example, a continuation of the housing recovery in the U.S., stabilization in Europe, and continued strength in Brazil. {snip}<\/p>\n

North America was over 50% of WHR’s revenue in the third quarter and over 70% of operating profit (note that I could not quite get the numbers in the earnings presentation to add up). Fortunately, WHR is “increasingly encouraged by leading demand indicators” in the U.S.:<\/p>\n