Ask Matt: Has Whirlpool escaped the flush?

Q: Has Whirlpool escaped the flush?

A: Whirpool (WHL) shares were getting flushed until earlier this year when the stock staged a strong rally. The first-quarter’s results didn’t inspire confidence, though, so investors have to hope 2016 works out as planned.

Shares of the maker of major home appliances sank $7.34, or 3.9%, to $178.73 Tuesday after the company reported a quarterly adjusted profit of $2.63 a share, which missed expectations by 2%, says S&P Global Market Intelligence. During the period, profit rose 23% but revenue fell nearly 5% to $4.6 billion, which was also shy of expectations. Investors reacted negatively to the fact the first quarter didn’t pan out - despite a strong rally in the shares during the period. Shares of Whirlpool pulled out of a difficult run in 2015, when they lost 24% of their value, by ralling 23% during the first quarter. Analysts remain bullish on the company and its shares, rating the stock a “buy” and holding out a bullish 18-month price target of $203.20 a share. Bolstering that positive thesis is the fact Whirlpool reiterated its earnings guidance for fiscal 2016, saying it will be in the range of $14 to $14.75 a share. That’s squarely in line with the $14.67 a share profit expected by Wall Street.

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.et.