Mohawk Industries Set to Announce Q4 Earnings Amid Mixed Analyst Expectations
Mohawk Industries, Inc. (MHK), founded in 1988 and based in Calhoun, Georgia, is a prominent player in the global flooring market. The company boasts a market capitalization of $8.2 billion and focuses on innovative and sustainable flooring solutions, which include carpets, rugs, ceramic tiles, and hardwood. Investors are eager for the company’s fourth-quarter earnings report, scheduled for release after market hours on Thursday, February 6.
Anticipations Ahead of the Earnings Report
Analysts predict Mohawk will post a profit of $1.86 per share, reflecting a 5.1% decline from $1.96 per share from the same quarter last year. Despite the expected dip, it is noteworthy that Mohawk has outperformed Wall Street’s adjusted EPS forecasts in each of the past four quarters.
Recent Financial Performance and Projections
In the third quarter, Mohawk reported an EPS of $2.90, slightly above expectations, thanks to strong cost management and operational efficiencies. Analysts are forecasting an adjusted EPS of $9.62 for fiscal 2024, which is a 4.7% increase from $9.19 in fiscal 2023. Looking ahead to fiscal 2025, this figure is projected to rise further to $10.94, indicating a growth of 13.7%.
Stock Performance Highlights
Over the past year, Mohawk Industries’ shares have increased by 29.6%, outpacing the S&P 500 Index’s ($SPX) growth of 26.5%, but falling short of the 33.1% returns seen in the Consumer Discretionary Select Sector SPDR Fund (XLY).
Market Reaction to Previous Earnings
Following the Q3 earnings announcement on October 24, Mohawk’s shares dropped by 13.8% in the subsequent trading session. The reported revenue was $2.72 billion, representing a 1.7% decrease year-over-year, which aligned with consensus predictions. EBITDA of $392.4 million narrowly surpassed expectations, while the gross margin decreased from 26.6% to 25.5% compared to last year. Positively, the operating margin improved to 7.8%, although free cash flow margin declined to 7.5% from 13.9% in the previous year.
Analysts Show Moderate Confidence
The general sentiment among analysts regarding MHK stock is moderately optimistic, reflected in the overall “Moderate Buy” rating. Of the 14 analysts covering Mohawk, eight have rated it as a “Strong Buy,” while six recommend a “Hold.” The average price target stands at $153.43, indicating a potential upside of 18.7% from current levels.
On the date of publication,
Rashmi Kumari
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy
here.
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