Mohawk Industries, Inc. MHK reported better-than-expected results for the fourth quarter of 2024, with adjusted earnings and revenues topping the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined.
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The quarter’s performance reflects benefits realized from the sales actions, restructuring initiatives and productivity improvements undertaken by the company. Furthermore, the product introductions made last year, coupled with the marketing initiatives, backed the global sales trend. However, adverse impacts from the U.S. hurricanes, along with soft residential demand trends in its end markets, partially offset the quarter’s results.
Through operational efficiencies and strategic restructuring actions, the company aims to generate annualized savings of approximately $285 million in 2026.
Shares of this leading global flooring manufacturer gained 1.7% in the after-hours trading session on Thursday.
Inside MHK’s Q4 Numbers
Mohawk reported adjusted earnings per share (EPS) of $1.95, which topped the Zacks Consensus Estimate of $1.88 by 3.7%. In the year-ago quarter, the company reported an adjusted EPS of $1.96.
Net sales of $2.64 billion also topped the consensus estimate of $2.57 billion by 2.8% and inched up 1% year over year from $2.61 billion. On an adjusted basis, net sales were down 1% year over year.
Mohawk Industries, Inc. Price, Consensus and EPS Surprise
Mohawk Industries, Inc. Price, Consensus and EPS Surprise
Mohawk Industries, Inc. price-consensus-eps-surprise-chart | Mohawk Industries, Inc. Quote
Adjusted gross margin contracted 30 basis points (bps) year over year to 24.4%. Adjusted selling, general and administrative expenses, as a percent of net sales, rose 40 bps to 18.4% from the year-ago period. Adjusted operating margin contracted 60 bps to 6.1% from 6.7% a year ago.
Mohawk’s Segmental Details
Global Ceramic: Sales in the segment totaled $1.008 billion, up 1.5% year over year on a reported basis and 1.2% on an adjusted basis. Adjusted net sales were $1.005 billion.
Adjusted operating income increased to $53.5 million from $48 million a year ago. The segment’s adjusted operating margin expanded to 5.3% from 4.8% a year ago.
Flooring North America: Net sales at the segment amounted to $937.2 million, up 2.8% year over year on a reported basis but down 0.5% on an adjusted basis. Adjusted net sales were $907.9 million.
The segment registered an adjusted operating profit of $53.7 million, down from $63.2 million reported in the prior-year period. Adjusted operating margin was 5.7%, down from 6.9% a year ago.
Flooring Rest of the World: Net sales in the segment decreased 2.1% year over year on a reported basis to $691.8 million. On an adjusted basis, sales were down 4.8% from the year-ago level. Adjusted net sales were $672.4 million.
Adjusted operating income was $68.9 million, down from $74.6 million reported a year ago. The segment’s adjusted operating margin was 10%, down from 10.6% in the year-ago period.
2024 Highlights of Mohawk
For the full year, the company reported net sales of $10.84 billion, down from $11.14 billion reported in 2023.
The company reported an adjusted EPS of $9.70, up from $9.19 reported a year ago.
Financial Highlights of MHK
As of Dec. 31, 2024, Mohawk had cash and cash equivalents of $666.6 million compared with $642.6 million as of 2023-end. The long-term debt, less the current portion, slightly decreased to $1.68 billion from $1.7 billion at the end of 2023.
During 2024, MHK repurchased 1.3 million shares of its common stock for $161 million.
In the year, the company generated a free cash flow of $680 million, down from $716.3 million a year ago.
Mohawk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hilton Worldwide Holdings Inc. HLT reported exceptional fourth-quarter 2024 results, wherein adjusted earnings and total revenues surpassed the Zacks Consensus Estimate and grew year over year.
The company's performance was backed by strong demand for leisure travel, with continued growth in business transient and group travel. These robust trends supported growth in occupancy and average daily rate (ADR), thus, resulting in increased revenue per available room (RevPAR). Furthermore, favorable net unit growth compared with last year and the continuous efforts in expanding the portfolio globally added to the uptrend. HLT expects the robust travel trends to continue into 2025, positioning it to deliver strong results in the near term.
Mattel, Inc. MAT reported fourth-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
In 2024, Mattel repurchased $400 million worth of shares and further improved its leverage ratio. The company remains ahead of schedule in achieving its $200 million cost-savings target by 2026. For 2025, Mattel projects continued revenue and earnings growth, increased investments in digital gaming, and a $600 million share repurchase program, underscoring its commitment to long-term shareholder value creation. MAT anticipates adjusted EPS in 2025 to be between $1.66 and $1.72 compared with $1.62 reported in 2024.
Adtalem Global Education Inc. ATGE posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.
Adtalem's operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings to be in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75-$5.95.
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