Mohawk Industries, Inc. (MHK) Expected to Post Earnings of $2.52 Per Share

Equities analysts predict that Mohawk Industries, Inc. (NYSE:MHK) will announce earnings of $2.52 per share for the current quarter, according to Zacks Investment Research. Seven analysts have issued estimates for Mohawk Industries’ earnings, with the highest EPS estimate coming in at $2.57 and the lowest estimate coming in at $2.49. Mohawk Industries posted earnings per share of $3.42 in the same quarter last year, which indicates a negative year over year growth rate of 26.3%. The company is scheduled to announce its next quarterly earnings results on Thursday, February 14th.

On average, analysts expect that Mohawk Industries will report full-year earnings of $12.32 per share for the current fiscal year, with EPS estimates ranging from $12.28 to $12.37. For the next fiscal year, analysts forecast that the company will post earnings of $11.71 per share, with EPS estimates ranging from $10.70 to $12.30. Zacks’ earnings per share calculations are an average based on a survey of sell-side analysts that cover Mohawk Industries.

Mohawk Industries (NYSE:MHK) last posted its earnings results on Thursday, October 25th. The company reported $3.29 EPS for the quarter, missing the Zacks’ consensus estimate of $3.58 by ($0.29). Mohawk Industries had a net margin of 8.81% and a return on equity of 13.49%. The business had revenue of $2.55 billion during the quarter, compared to analysts’ expectations of $2.61 billion.

A number of research firms have commented on MHK. Royal Bank of Canada set a $129.00 target price on Mohawk Industries and gave the company a “hold” rating in a research report on Monday, October 29th. Loop Capital set a $122.00 target price on Mohawk Industries and gave the company a “hold” rating in a research report on Friday, October 26th. Credit Suisse Group restated a “neutral” rating on shares of Mohawk Industries in a research report on Monday, October 29th. TheStreet downgraded Mohawk Industries from a “b-” rating to a “c+” rating in a report on Friday, August 10th. Finally, Nomura cut their price objective on Mohawk Industries from $260.00 to $185.00 and set a “buy” rating on the stock in a report on Friday, October 26th. Four analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $171.63.

In related news, Director Filip Balcaen purchased 250,000 shares of the business’s stock in a transaction on Monday, October 29th. The shares were bought at an average price of $118.42 per share, for a total transaction of $29,605,000.00. Following the acquisition, the director now directly owns 776 shares in the company, valued at $91,893.92. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Bernard Thiers sold 5,000 shares of the company’s stock in a transaction dated Tuesday, September 11th. The stock was sold at an average price of $190.00, for a total value of $950,000.00. Following the sale, the insider now owns 40,156 shares in the company, valued at approximately $7,629,640. The disclosure for this sale can be found here. In the last quarter, insiders purchased 340,898 shares of company stock worth $40,917,073 and sold 29,805 shares worth $4,918,906. 16.80% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in Mohawk Industries by 0.5% during the 3rd quarter. Vanguard Group Inc. now owns 6,421,024 shares of the company’s stock worth $1,125,927,000 after purchasing an additional 29,538 shares during the period. BlackRock Inc. increased its holdings in Mohawk Industries by 2.2% during the 2nd quarter. BlackRock Inc. now owns 6,257,455 shares of the company’s stock worth $1,340,786,000 after purchasing an additional 134,039 shares during the period. Select Equity Group L.P. increased its holdings in Mohawk Industries by 20.6% during the 2nd quarter. Select Equity Group L.P. now owns 1,959,024 shares of the company’s stock worth $419,760,000 after purchasing an additional 334,869 shares during the period. First Pacific Advisors LP purchased a new stake in Mohawk Industries during the 3rd quarter worth about $277,086,000. Finally, Wells Fargo & Company MN increased its holdings in Mohawk Industries by 16.2% during the 3rd quarter. Wells Fargo & Company MN now owns 1,273,539 shares of the company’s stock worth $223,315,000 after purchasing an additional 177,109 shares during the period. Institutional investors own 78.20% of the company’s stock.

NYSE:MHK traded down $2.57 on Friday, reaching $120.44. The company’s stock had a trading volume of 1,114,497 shares, compared to its average volume of 866,539. Mohawk Industries has a 12-month low of $113.45 and a 12-month high of $282.32. The company has a quick ratio of 0.79, a current ratio of 1.54 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $9.13 billion, a P/E ratio of 8.85, a P/E/G ratio of 1.50 and a beta of 1.61.

Mohawk Industries announced that its board has initiated a stock buyback plan on Thursday, October 25th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 4.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

About Mohawk Industries

Mohawk Industries, Inc designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces worldwide. It operates through three segments: Global Ceramic, Flooring North America (Flooring NA), and Flooring Rest of the World (Flooring ROW).

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