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Flooring manufacturer Mohawk Industries (NYSE:MHK) will be reporting earnings tomorrow afternoon. Here’s what to look for.
Mohawk Industries met analysts’ revenue expectations last quarter, reporting revenues of $2.72 billion, down 1.7% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations significantly and organic revenue in line with analysts’ estimates.
Is Mohawk Industries a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Mohawk Industries’s revenue to decline 3% year on year to $2.53 billion, a further deceleration from the 1.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.85 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mohawk Industries has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Mohawk Industries’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. VF Corp delivered year-on-year revenue growth of 1.9%, beating analysts’ expectations by 1.2%, and FOX reported revenues up 19.9%, topping estimates by 5%. VF Corp traded up 1.4% following the results.
Read our full analysis of VF Corp’s results here and FOX’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.5% on average over the last month. Mohawk Industries is up 3.2% during the same time and is heading into earnings with an average analyst price target of $150.51 (compared to the current share price of $121).
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