Published on 26 Apr 2024 on Zacks via Yahoo Finance

Mohawk (MHK) Q1 Earnings Beat, Margins Rise, Q2 View Strong

Mohawk Industries, Inc. MHK reported impressive earnings in first-quarter 2024 (ended Mar 30). Its earnings surpassed the Zacks Consensus Estimate and improved from the prior year on the back of lower input costs, less restructuring expenses and productivity gains.Shares of this leading global flooring manufacturer inched up 0.2% in the after-hours trading session on Apr 25.On the other hand, net sales declined on a year-over-year basis but marginally beat the consensus mark.Despite the positive effect of actions taken to enhance its performance, economic headwinds are impacting industry sales, margins and mix. Amid persistent market conditions, significant pricing and mix pressure due to industry competition for volume hurt the performance. Mohawk also noted that residential remodeling remained soft due to low housing sales and the impact of inflation on discretionary spending.

Inside the Numbers

Mohawk reported adjusted earnings per share (EPS) of $1.86, which topped the consensus mark of $1.70 by 9.4%. The metric increased from $1.75 per share, reflecting a rise of 6.3% year over year, backed by restructuring, productivity initiatives and benefits from lower cost raw materials and energy, partially offset by weaker pricing and mix.