Shares of Whirlpool (ticker: WHR) took a hit as the company's revised earnings guidance and margin concerns overshadowed an impressive third-quarter performance.

According to FactSet, Whirlpool reported adjusted earnings of $5.45 per share for the third quarter, surpassing estimates of $4.27. Net sales also exceeded Wall Street's expectations, coming in at $4.93 billion compared to the projected $4.79 billion. The company attributed this growth to its share gains in North America and overall industry strength. However, Whirlpool noted that these positives were offset by a normalization of the promotional environment.

While Whirlpool maintained its full-year net sales guidance of $19.4 billion, it revised its adjusted earnings forecast to $16 per share. This adjustment, down from the previous range of $16 to $18, indicates potential challenges ahead.

Analyzing the earnings report, Raymond James analysts Sam Darkatsh and Joshua Wilson, who rate Whirlpool shares at Outperform, highlighted the impact of taxes on the company's impressive 3Q EPS. However, they also noted that price/mix headwinds and lower net cost benefits resulted in margins falling below expectations. The analysts further cautioned that similar pressures might affect Whirlpool's fourth-quarter performance, as indicated by the lower-than-expected EPS guidance.

Following the news, shares of Whirlpool plummeted 13% to $109.37. This decline marks the largest percentage decrease since March 23, 2020 when shares dropped 14%, according to Dow Jones Market Data.

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