Mohawk (MHK) Shares Up 4.7% As Q3 Earnings Beat Estimates
Zacks Investment Research | Oct 25, 2019 12:14AM ET
Mohawk Industries, Inc.’s (NYSE:MHK) shares increased 4.7% during after-hour trading session on Oct 24 as it reported better-than-expected third-quarter 2019 results. Both earnings and revenues surpassed the Zacks Consensus Estimate.
However, on a year-over-year basis, the top and the bottom line declined due to softness in retail demand, strong dollar and excess inventories. It expects the afore-mentioned headwinds to prevail in the upcoming quarter as well.
Inside the Headlines
During the quarter, Mohawk reported adjusted earnings per share of $2.75, which surpassed the consensus mark of $2.64 by 4.2%. However, the metric declined 16.4% year over year.
Net sales of $2,519.2 million surpassed the Zacks Consensus Estimate of $2,499 million by 0.8%. However, the reported figure fell from the year-ago quarter’s figure of $2,546.8 million. On a constant-currency and days basis, net sales were flat year over year.
To combat the above-mentioned headwinds, Mohawk has been undertaking many initiatives to improve business, which include aligning and realigning of ceramic production with demand in the United States and its North American carpet operations as well as setting up of new plants and upgrading its LVT manufacturing. Also, the company has enhanced its operations in Australia, New Zealand and Brazil by entering into new product categories, with innovative extensions.
Operating Highlights
Mohawk Industries, Inc. Price, Consensus and EPS Surprise
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