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Calhoun, Georgia-based Mohawk Industries, Inc. (MHK) designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels. With a market cap of $9.9 billion, Mohawk Industries’ operations span the Americas, Europe, and Indo-Pacific. It is expected to release its third-quarter earnings on Thursday, Oct. 24.
Ahead of the event, analysts expect Mohawk to report a profit of $2.89 per share, up 6.3% from $2.72 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s adjusted EPS projections in each of the past four quarters. Its adjusted EPS for the last reported quarter grew 8.7% year-over-year to $3.00, exceeding the consensus estimates by the same margin.
For fiscal 2024, analysts expect Mohawk to report an adjusted EPS of $10.00, up 8.8% from $9.19 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 15.3% to $11.53.
MHK has gained 50% on a YTD basis, substantially outpacing the S&P 500 Index’s ($SPX) 19.4% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 9.1% returns during the same time frame.
Shares of Mohawk Industries soared 19.5% after its Q2 earnings release on July 25. Despite a 5.1% annual sales decline to $2.8 billion due to elevated interest rates, inflation, and weak housing sales, the company demonstrated remarkable operational efficiency.
Mohawk’s strategic cost management led to significant reductions in both cost of sales and selling, general, and administrative expenses, thereby enhancing profit margins. The operating margin expanded by 2.5% year over year to 7.6%, with operating income totaling $214 million. This underscores Mohawk’s ability to navigate challenging market conditions while improving profitability.
The consensus opinion on MHK stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 13 analysts covering the stock, five recommend “Strong Buy,” seven suggest “Hold,” and one advises a “Strong Sell” rating.
The mean price target of $163.15 suggests a potential upside of 5.1% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
