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Mohawk Industries, Inc. (MHK), headquartered in Calhoun, Georgia, designs, manufactures, sources, distributes, and markets flooring products for residential and commercial applications and new construction markets. Valued at $6.2 billion by market cap, the company offers a broad range of products, including ceramic and porcelain tiles, natural stone, carpets, rugs, laminate, luxury vinyl tile, sheet vinyl, wood flooring, and countertops. The flooring giant is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Thursday, May 1.
Ahead of the event, analysts expect MHK to report a profit of $1.41 per share on a diluted basis, down 24.2% from $1.86 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect MHK to report EPS of $9.54, down 1.7% from $9.70 in fiscal 2024. However, its EPS is expected to rise 17% year over year to $11.16 in fiscal 2026.
MHK stock has underperformed the S&P 500’s ($SPX) 4.7% gains over the past 52 weeks, with shares down 12.9% during this period. Similarly, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 7.8% rise over the same time frame.
MHK’s underperformance can be linked to the negative sales impact from U.S. hurricanes and soft residential demand. Additionally, stifled housing market, elevated interest rates, and a decline in renovation projects have added to the challenges.
On Feb. 6, MHK shares closed up marginally after reporting its Q4 results. Its adjusted EPS of $1.95 exceeded Wall Street expectations of $1.88. The company’s revenue was $2.64 billion, beating Wall Street forecasts of $2.57 billion.
Analysts’ consensus opinion on MHK stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 15 analysts covering the stock, eight advise a “Strong Buy” rating, and seven give a “Hold.” MHK’s average analyst price target is $142.27, indicating a potential upside of 30.6% from the current levels.
On the date of publication, Neha Panjwani 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.
