This week's edition of Options Spotlight takes a look at Whirlpool Corporation (WHR: sentiment, chart, options). Whirlpool is one of the world's top home appliance makers, according to Hoover's. It makes washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, trash compactors, air purifiers, and more. In addition to Whirlpool, the company sells its products under a bevy of brand names including KitchenAid, Bauknecht, Roper, Maytag, and Magic Chef. Whirlpool peddles its appliances in North America, Europe, Latin America, Africa, the Middle East, and Asia.
On Oct. 23, the company announced a third-quarter profit of $87 million, or $1.15 per share, down from $163 million, or $2.15 per share, a year earlier. The latest results included a charge of 50 cents per share stemming from a settlement with Brazilian authorities over anticompetitive allegations leveled at Whirlpool's affiliate for appliance compressors. Revenue in the quarter fell 8.2% to $4.5 billion. Analysts had forecast earnings of 77 cents per share on $4.28 billion in sales.
In addition, the firm raised its 2009 profit target to about $4.25 per share, compared with its prior estimate of $3.50 to $4 per share. The company also raised its projected year-end levels of cash after capital expenditures to $500 million to $600 million from $300 million to $500 million. The company expects capital expenditures for the year to be in a range of $475 million to $525 million.
In the Options Spotlight, I shine a light on what's happening in the options world. In the case of Whirlpool, put activity has been brisk as investors attempt to call a top to the security's rally. Has this stock's uptrend finally reached an end? For a closer look at Whirlpool and its sentiment backdrop, please click on the video button below.
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