Mohawk Industries Prepares for Earnings Report Amid Market Challenges

Mohawk Industries, Inc. (MHK), located in Calhoun, Georgia, specializes in designing, manufacturing, sourcing, distributing, and marketing flooring products intended for residential and commercial uses, as well as new constructions. With a market capitalization of $6.2 billion, Mohawk offers an extensive array of flooring solutions, including ceramic and porcelain tiles, natural stone, carpets, rugs, laminate, luxury vinyl tile, sheet vinyl, wood flooring, and countertops. Investors are awaiting the company’s fiscal first-quarter earnings report for 2025, set to be released after market closure on Thursday, May 1.

Analysts predict that MHK will report earnings of $1.41 per share on a diluted basis, reflecting a decrease of 24.2% compared to $1.86 per share from the same quarter last year. Notably, the firm has consistently exceeded Wall Street’s earnings per share (EPS) forecasts in its past four quarterly results.

For the full fiscal year, analysts anticipate MHK will achieve an EPS of $9.54, which represents a slight decline of 1.7% from the $9.70 recorded in fiscal 2024. Looking ahead, however, there is optimism, as EPS is expected to increase by 17% year-over-year to $11.16 in fiscal 2026.

In the context of performance, MHK has struggled compared to the broader market. Over the last 52 weeks, MHK shares have declined by 12.9%, while the S&P 500 ($SPX) experienced gains of 4.7%. Furthermore, MHK did not match the 7.8% increase of the Consumer Discretionary Select Sector SPDR Fund (XLY) during the same period.

The company’s recent underperformance can be attributed to diminished sales due to U.S. hurricanes and a weakness in residential demand. The current housing market’s stagnation, high interest rates, and a reduction in renovation projects have also posed significant challenges.

On February 6, MHK shares saw a slight uptick following its Q4 earnings announcement. The adjusted EPS of $1.95 surpassed Wall Street’s estimate of $1.88, while revenue reached $2.64 billion, which was above analysts’ projections of $2.57 billion.

Consensus among analysts for MHK stock is largely optimistic, resulting in a “Moderate Buy” rating. Among 15 analysts covering the stock, eight recommend a “Strong Buy” while seven suggest a “Hold.” The average price target for MHK is set at $142.27, indicating a potential upside of 30.6% from current trading levels.

On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information contained in this article is for informational purposes only. For more details, view the Barchart Disclosure Policy here.

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