Here's What to Expect From Mohawk Industries' Next Earnings Report

Mohawk Industries, Inc. (MHK), incorporated in 1988 and headquartered in Calhoun, Georgia, is a leading global flooring solutions manufacturer. With a strong market presence and a market cap of $8.2 billion, Mohawk specializes in producing innovative and sustainable flooring products, including carpets, rugs, ceramic tiles, and hardwood. The company is set to release its fourth-quarter earnings after the market closes on Thursday, Feb. 6.

Ahead of the event, analysts expect Mohawk to report a profit of $1.86 per share, down 5.1% from $1.96 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s adjusted EPS projections in each of the past four quarters. 

In Q3, Mohawk Industries reported an EPS of $2.90, slightly exceeding consensus estimates, with the performance supported by effective cost management and operational efficiencies.

For fiscal 2024, analysts expect Mohawk to report an adjusted EPS of $9.62, up 4.7% from $9.19 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 13.7% to $10.94. 

Mohawk Industries' shares have climbed 29.6% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 26.5% gains but lagging behind the 33.1% returns of the Consumer Discretionary Select Sector SPDR Fund (XLY) in the same period.

Mohawk Industries saw its shares decline 13.8% in the following trading session after the release of Q3 earnings on Oct. 24. The company reported revenue of $2.72 billion, a 1.7% year-over-year decline, which matched consensus estimates. EBITDA of $392.4 million slightly beat expectations, while the gross margin fell to 25.5% from 26.6% a year earlier. The operating margin improved significantly to 7.8%. However, the free cash flow margin declined to 7.5%, compared to 13.9% a year ago.

Analysts' consensus view on MHK stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 14 analysts covering the stock, eight recommend a “Strong Buy,” and six suggest a “Hold” rating. The mean price target of $153.43 suggests a potential upside of 18.7% from current price levels.