Name brand household appliance manufacturer Whirlpool (NYSE: WHR) reported mixed second-quarter earnings yesterday. While revenue of $5.1 billion missed Wall Street expectations of $5.14, an adjusted EPS of $5.97 beat consensus by $0.73. The stock pays a handsome dividend yield of over 4.1%. Can the company keep up its stellar dividend?
Whirlpool's European segment took a big hit in the first quarter. Management said that, due to the continuing conflict between Russia and Ukraine and the declining Euro, revenue in the region fell 19%. However, excluding the impact of currency, revenue declined by only 10.3%.
More startling was the 94% drop in earnings before interest, taxes, depreciation, and amortization (EBITDA) in the European region. The company blamed lower volumes and inflation for the eye-popping decline in EBITDA. During the quarter, the company also agreed to sell its Russian business.
Source Fool.com