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  • Professor Andrea M. Armani, University of Southern California
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Mohawk Industries Earnings: What To Look For From MHK

MHK Cover Image

Flooring manufacturer Mohawk Industries (NYSE: MHK) will be announcing earnings results this Thursday afternoon. Here’s what to look for.

Mohawk Industries missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $2.53 billion, down 5.7% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations and a slight miss of analysts’ organic revenue estimates.

Is Mohawk Industries a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Mohawk Industries’s revenue to decline 2.2% year on year to $2.74 billion, improving from the 5.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.61 per share.

Mohawk Industries Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mohawk Industries has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Mohawk Industries’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 5.8%, and Nike reported a revenue decline of 12%, topping estimates by 3.4%. Levi's traded up 11.1% following the results while Nike was also up 15.2%.

Read our full analysis of Levi’s results here and Nike’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 13.9% on average over the last month. Mohawk Industries is up 11.9% during the same time and is heading into earnings with an average analyst price target of $127.84 (compared to the current share price of $115.10).

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