NYSE$MHK

Mohawk Industries Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Mohawk Industries reported Q2 2024 results, with adjusted EPS rising due to productivity initiatives, restructuring, and lower costs, offset by pricing pressure and exchange headwinds.

Mohawk Industries reported Q2 2024 net sales of $2.8 billion, a decrease of 5.1% as reported and 4.5% on an adjusted basis. Net earnings were $157 million, with an EPS of $2.46; adjusted EPS was $3.00. The company generated free cash flow of approximately $142 million during the quarter.

  • Adjusted earnings per share rose due to productivity initiatives, restructuring, and lower energy and material costs.
  • Free cash flow generated was approximately $142 million during the quarter.
  • The company purchased approximately 755 thousand shares, or 1.2%, of its stock for approximately $90 million.
  • Additional restructuring actions are being initiated to generate annualized savings of $100 million.

Headline financials

Total Revenue

$2.8B

Previous: $2.95B-5.1%
EPS

$2.46

Previous: $2.76-10.9%
Operating Margin

9.2%

Previous: 5.2%+77.4%
Adjusted Gross Profit % of Net Sales

27.1%

No prior period
Adjusted SG&A % of Net Sales

17.9%

No prior period
Global Ceramic Adjusted Op. Margin

8.5%

No prior period
Flooring NA Adjusted Op. Margin

8.6%

No prior period
Flooring ROW Adjusted Op. Margin

12.6%

No prior period
Capital Expenditures

-$178M

Previous: -$245M+27.3%
Free Cash Flow

-$20.8M

Previous: -$144M+85.5%
Net Income

$157M

Previous: $101M+55.5%
Operating Income

$214M

Previous: $153M+39.8%
Gross Profit

$724M

Previous: $732M-1.1%
Cash & Equivalents

$497M

Previous: $571M-12.9%
Total Assets

$13.3B

Previous: $14.6B-9.0%
Stock-Based Comp

$6.8M

Previous: $5.38M+26.3%

Revenue & EPS history

Mohawk · Revenue · Quarterly

$2.8B

Q2 2024-5.1%vs Q2 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 present conditions continuing in the third quarter with elevated interest rates, inflation and weak housing sales impacting our markets. Given these factors, the company anticipates third quarter adjusted EPS to be between $2.80 and $2.90, excluding any restructuring or other one-time charges.

Tailwinds

  • Benefit from lower energy and raw material costs.
  • Executing plans to optimize revenues and costs.
  • Restructuring initiatives will deliver significant savings and enhance performance when markets recover.
  • Residential remodeling should lead the recovery as interest rates decline and consumer confidence improves.
  • Product investments will enhance participation.

Headwinds

  • Elevated interest rates impacting markets.
  • Inflation impacting markets.
  • Weak housing sales impacting markets.
  • Pricing pressures will continue given low industry volumes.
  • Consumers trading down.

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 Q2 2024

Historical avgQ2 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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