MHK Earnings Prediction
The chart below shows how MHK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MHK sees a -1.29% change in stock price 10 days leading up to the earnings, and a -2.05% change 10 days following the report. On the earnings day itself, the stock moves by +1.11%. This data can give you a slight idea of what to expect for the next quarter's release.
MHK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.64B
0.95%
-3.01%
Gross Margin
23.58%
-4.42%
-9.59%
Operating Margin
5.12%
-25.47%
-39.98%
Net Margin
3.53%
-38.29%
-40.77%
EPS
1.47
-32.88%
-42.58%
No Data Available
MHK Earnings Analysis
Mohawk Industries Inc Corporation (MHK.N) Earnings Conference Call
Positive
Consistent Q4 Net Sales: Net sales for Q4 were approximately $2,600,000,000, consistent with the prior year, aided by two additional shipping days and productivity improvements.
Quarterly Adjusted EPS Stability: Adjusted EPS for the quarter was $1.95, in line with the prior year, reflecting strong productivity and lower interest expenses despite market challenges.
Strong Cash Generation: Generated free cash flow of $680,000,000 for the full year, demonstrating strong cash generation capabilities even in a soft market.
Share Repurchase Confidence: Repurchased 1,300,000 shares of stock for $161,000,000, indicating confidence in the company's long-term value and commitment to returning capital to shareholders.
Gross Margin Achievement: Achieved a gross margin of 23.6% for the quarter, supported by operational improvements and cost management initiatives.
Negative
Sales Performance Overview: Net sales for Q4 2024 were approximately $2,600,000,000, consistent with the prior year, but the company faced a 3% decline in full-year net sales to approximately $10,800,000,000 due to deteriorating market conditions.
Q4 Adjusted EPS Performance: Adjusted EPS for Q4 was $1.95, in line with the prior year, but the company experienced unfavorable pricing and product mix, leading to a decline in operating income margin by 60 basis points to 6.1%.
Sales Decline and Margin Pressure: The Flooring North America segment reported a 0.5% decline in sales on a constant basis, with operating income margin decreasing by 120 basis points due to price and mix pressures totaling $25,000,000 and higher input costs of $11,000,000.
Sales Decline and Margin Impact: The Flooring Rest of World segment saw a 4.8% decline in sales on a constant basis, with operating margin decreasing by 60 basis points primarily due to unfavorable price and mix of $14,000,000 and increased input costs.
Q1 Adjusted EPS Forecast: The company anticipates a first-quarter adjusted EPS between $1.34 and $1.44, which includes an estimated impact of $0.35 per share due to issues with the Flooring North America order management system, resulting in a potential operating income impact of $25,000,000 to $30,000,000.
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MHK Earning Call Sentiment
Earnings call transcript: Mohawk Industries Q4 2024 earnings beat estimates
MHK.N
-3.5%Positive
The earnings call reflects mixed financial results with stagnant net sales and EPS, alongside pressures on gross margins and operating income. The Q&A session revealed concerns about pricing pressures and lack of market rebound, contributing to a negative sentiment. While shareholder returns and restructuring savings are positives, the overall outlook remains cautious with no clear growth trajectory. Given these factors, the stock is likely to experience a negative reaction in the short term.
