Mohawk Industries Earnings: Here’s Why Investors are Happy Now

Mohawk Industries Inc. (NYSE:MHK) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 8.83%.

Mohawk Industries Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 61.4% to $1.84 in the quarter versus EPS of $1.14 in the year-earlier quarter.

Revenue: Rose 34.46% to $1.98 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mohawk Industries Inc. reported adjusted EPS income of $1.84 per share. By that measure, the company beat the mean analyst estimate of $1.66. It beat the average revenue estimate of $1.96 billion.

Quoting Management: Commenting on Mohawk Industries’ second quarter performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, “Mohawk, the world’s largest flooring manufacturer, today reported our most successful second quarter on record with strong revenue and profit growth, as both our legacy business and recent acquisitions delivered solid performances that exceeded our expectations. For the quarter, our legacy net sales increased 6% as reported, with the balance of our growth stemming from our recent acquisitions of Pergo, Marazzi and Spano. Our adjusted SG&A improved by 110 basis points due to continuing control of our costs, and our adjusted operating income rose to 10% of sales, an improvement of 190 basis points.”

Key Stats (on next page)…

Revenue increased 32.92% from $1.49 billion in the previous quarter. EPS increased 111.49% from $0.87 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.61 to a profit $1.68. For the current year, the average estimate has moved up from a profit of $5.58 to a profit of $5.82 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , , ,  

More from The Cheat Sheet