NYSE$MHK

Mohawk Industries Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Mohawk Industries reported Q1 2024 results with increased EPS, driven by restructuring, productivity, and lower input costs, despite economic headwinds and pricing pressures.

Mohawk Industries reported Q1 2024 net sales of $2.7 billion, a decrease of 4.5% year-over-year. However, EPS rose to $1.64, and adjusted EPS was $1.86, compared to $1.26 and $1.75 respectively in the prior year. The company benefited from restructuring, productivity initiatives, and lower raw material costs.

  • Net sales decreased by 4.5% year-over-year to $2.7 billion.
  • Earnings per share increased year-over-year to $1.64.
  • Restructuring and productivity initiatives positively impacted earnings.
  • Commercial channel continues to outperform residential.

Headline financials

Total Revenue

$2.68B

Previous: $2.81B-4.5%
EPS

$1.64

Previous: $1.75-6.3%
Operating Margin

6.1%

Previous: 6.0%+1.7%
Adjusted Gross Profit % of Net Sales

24.4%

No prior period
Adjusted SG&A % of Net Sales

18.4%

No prior period
Capital Expenditures

-$86.8M

Previous: -$128M+32.4%
Free Cash Flow

$18.2M

Previous: -$48.3M+137.7%
Net Income

$105M

Previous: $80.2M+30.9%
Operating Income

$147M

Previous: $126M+16.5%
Gross Profit

$650M

Previous: $643M+0.9%
Cash & Equivalents

$659M

Previous: $573M+14.9%
Total Assets

$13.5B

Previous: $14.8B-8.3%
Stock-Based Comp

$6.8M

Previous: $5M+36.0%

Revenue & EPS history

Mohawk · Revenue · Quarterly

$2.68B

Q1 2024-4.5%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Mohawk · $2.77B total across 3 segments · Q3 2023

  • Global Ceramic
    $1.09B-0.5%
  • Flooring NA
    $962M-11.7%
  • Flooring ROW
    $712M-2.6%

Forward guidance

The company anticipates second quarter adjusted EPS to be between $2.68 and $2.78, excluding any restructuring or other one-time charges.

Tailwinds

  • Residential flooring sales should lead the recovery.
  • Consumer confidence is expected to improve.
  • The housing market is anticipated to strengthen.
  • Postponed remodeling projects are expected to be initiated.
  • Existing home sales will normalize, a catalyst for flooring.

Headwinds

  • European vacation schedules will affect sales.
  • Slowing commercial channel.
  • Residential remodeling remains soft.
  • Low housing sales.
  • Impact of inflation on discretionary spending.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.6%

Avg return

Earnings day

+0.7%

Avg return

5 days after

-0.5%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+26.4%

Q2 2024

Best reaction

-22.0%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.8%-1.1%+1.9%
Q4 2025-0.7%-1.9%-23.2%
Q3 2025-7.1%-8.8%-14.7%
Q1 2025-1.9%-5.3%-5.5%
Q4 2024-1.3%-4.3%-4.1%
Q3 2024-13.7%-12.7%-8.5%
Q2 2024+26.4%+27.5%+24.0%
Q1 2024+3.6%+3.5%+4.5%
Q4 2023+1.0%+5.8%+11.7%
Q3 2023-2.1%+2.8%+7.4%
Q2 2023-7.8%-7.1%-17.3%
Q1 2023+11.6%+6.5%+0.3%
Q4 2022-4.4%-3.2%-19.1%
Q3 2022-1.9%-3.6%+4.4%
Q2 2022-5.1%-11.3%-19.1%
Q1 2022+12.0%+21.6%+12.6%
Q4 2021-8.5%-5.9%-16.8%
Q3 2021-8.1%-9.6%-9.0%
Q2 2021+2.6%+4.9%+7.2%
Q1 2021-1.1%+5.8%+1.4%
Q4 2020+5.9%+7.0%+18.2%
Q3 2020+11.9%+26.9%+41.6%
Q2 2020+0.6%+7.2%+8.5%
Q1 2020-1.1%+1.8%+25.3%
Q4 2019+3.6%-1.3%-27.6%
Q3 2019+12.2%+12.6%+9.2%
Q2 2019-16.6%-18.9%-27.4%
Q1 2019-5.3%+1.6%+8.8%
Q4 2018+6.6%+12.3%+3.6%
Q3 2018-22.0%-16.0%-14.0%
Q2 2018-18.3%-15.9%-13.3%
Q1 2018-4.3%-5.0%-6.1%
Q4 2017-6.8%-6.1%-8.5%
Q3 2017+0.5%-0.5%+4.7%
Q2 2017+3.5%+5.0%+2.9%
Q1 2017-1.5%-2.7%-1.0%
Q4 2016+4.0%+4.7%+7.6%
Q3 2016+6.8%+9.3%+6.4%
Q2 2016+2.6%+1.8%+2.6%
Q1 2016+1.5%
Q4 2015+4.6%
Q3 2015-5.6%
Q2 2015+0.5%
Q1 2015+5.0%
Q4 2014+7.3%
Q3 2014+5.5%
Q2 2014-0.2%
Q1 2014+6.4%
Q4 2013-0.4%
Q3 2013+3.5%
Q2 2013+9.2%
Q1 2013+6.8%
Q4 2012+3.1%
Q3 2012+3.9%
Q2 2012+6.2%
Q1 2012+0.7%
Q4 2011+0.7%
Q3 2011+0.7%
Q2 2011-5.7%
Q1 2010+7.7%
Q1 2011-1.0%
Q4 2008-1.0%
Q4 2010-1.0%
Q3 2009-7.3%
Q3 2010-7.3%
Q4 2009+8.7%
Q2 2009+8.7%
Q2 2010+8.7%

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