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

Mohawk Industries Inc. (NYSE:MHK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.27%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Mohawk Industries Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 50% to $0.87 in the quarter versus EPS of $0.58 in the year-earlier quarter.

Revenue: Rose 5.52% to $1.49 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mohawk Industries Inc. reported adjusted EPS income of $0.87 per share. By that measure, the company beat the mean analyst estimate of $0.85. It missed the average revenue estimate of $1.53 billion.

Quoting Management: Commenting on Mohawk Industries’ first quarter performance, Jeffrey S. Lorberbaum, Chairman and CEO, stated, “Improvements in the U.S. market, product mix, productivity improvements, lower amortization and the Pergo acquisition all contributed to our results, offset by the negative impact of a slower European economy and one less day in the period compared to last year. During the quarter, we generated adjusted EBITDA of $151 million and reduced SG&A by 90 basis points, relative to net sales, across the enterprise even as we increased investment in growth areas of the business.”

Key Stats (on next page)…

Revenue increased 3.56% from $1.44 billion in the previous quarter. EPS decreased 13.86% from $1.01 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 $1.53 to a profit $1.56. For the current year, the average estimate has moved up from a profit of $5.16 to a profit of $5.48 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