Whirlpool Whirring

Solid results this morning from appliance-maker Whirlpool (NYSE: WHR).

Overall revenue was up almost 9% to $4.5 billion, slightly beating the average guess on Wall Street. Adjusted  earnings, though, came in at $3.09, well ahead of the guess of $2.17 a share, and the company bumped its full-year guidance by $1, or about 12%.

There was good and bad here.

Good:
- Sales to Asia up 43%; sales to Latin America up 24%; unit shipments to Brazil look to be up about 10% this year
- North American sales up 6% and the company pushed guidance to the high end of its prior range.
- Internal profitability and cash flow generation is improving significantly

Not-so-good:
- Sales to Europe were down 6%; consistent with Electrolux, but not good news
- Minimal overall revenue upside guidance (the company is doing well on profits, but overall demand is iffy in North America and weak in Europe).

I find it interesting that Whirlpool is widely under-covered; most of the major brokers do not cover them. That could mean that the company is still slightly below the radar of some institutions. I mean, after all, this is an American manufacturing company and American manufacturing is supposed to be doomed, right?

I like the company's overseas prospects; it is a given to me that Brazil, India, and China are going to continue to develop, and their growing middle classes are going to want the sorts of things that Whirlpool makes. Surely there will be competition (China's Haier is already a major competitor), but Whirlpool can be fourth or fifth in China in ten years and still be doing alright.

I need to do a more robust analysis on this stock. I like the long-term thesis, the valuation seems interesting at first blush, the company is serious about internal efficiency, and the company is doing okay in a pretty tough time for its two largest markets (North America and Europe). All that is at least worth a closer look.