Flooring manufacturer Mohawk Industries (NYSE:MHK) will be reporting earnings tomorrow after market close. Here’s what you need to know.
Mohawk Industries missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $2.80 billion, down 5.1% year on year. It was a strong quarter for the company, with optimistic earnings guidance for the next quarter and a decent beat of analysts’ operating margin 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 2.5% year on year to $2.70 billion, improving from the 5.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.88 per share.
The majority of analysts covering the company have 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 three times over the last two years.
Looking at Mohawk Industries’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike traded down 6.8% following the results while Scholastic was up 6%.
Read our full analysis of Nike’s results here and Scholastic’s results here.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Mohawk Industries is down 2.6% during the same time and is heading into earnings with an average analyst price target of $168.55 (compared to the current share price of $152.93).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
