NYSE$MHK

Mohawk Industries Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Mohawk Industries reported Q3 2021 results with increased net sales and earnings.

Mohawk Industries reported a strong Q3 2021, with net sales of $2.8 billion, up 9.4% year-over-year, and diluted EPS of $3.93. Adjusted EPS was $3.95, excluding restructuring, acquisition, and other charges. The company managed through a challenging environment with supply chain difficulties and government lockdowns, while maintaining robust home sales and remodeling investments.

  • Net sales increased by 9.4% as reported and 8.7% on a constant currency basis.
  • Diluted earnings per share (EPS) reached $3.93, or $3.95 excluding certain charges.
  • The company faced challenges including COVID-related impacts, supply chain disruptions, and rising natural gas costs in Europe.
  • Mohawk increased its stock purchase program by an additional $500 million and bought back approximately $250 million of its stock during the quarter.

Headline financials

Total Revenue

$2.82B

Previous: $2.57B+9.4%
EPS (adj)

$3.95

Previous: $3.26+21.2%
Operating Margin

17.4%

Previous: 8.0%+117.5%
Capital Expenditures

-$375M

Previous: -$265M-41.4%
Free Cash Flow

-$104M

Previous: -$60.3M-72.8%
Net Income

$271M

Previous: $205M+32.1%
Operating Income

$360M

Previous: $263M+37.0%
Gross Profit

$837M

Previous: $706M+18.6%
Cash & Equivalents

$1.13B

Previous: $781M+44.4%
Total Assets

$14.5B

Previous: $13.8B+4.8%
Stock-Based Comp

$7.43M

Previous: $4.88M+52.1%

Revenue & EPS history

Mohawk · Revenue · Quarterly

$2.82B

Q3 2021+9.4%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Mohawk · $2.82B total across 3 segments · Q3 2021

  • Flooring NA
    $1.05B+6.9%
  • Global Ceramic
    $998M+9.6%
  • Flooring ROW
    $768M+12.7%

Forward guidance

For the fourth quarter, the company anticipates adjusted EPS to be $2.80 to $2.90, excluding any restructuring charges. They expect industry seasonality to be more typical and plan to run operations at high levels. Record natural gas prices in Ceramic Europe are increasing net costs by approximately $25 million in the fourth quarter.

Tailwinds

  • New home construction and residential remodeling are projected to remain robust.
  • The commercial sector is expected to improve as businesses invest and grow.
  • Sales should grow with capacity expansions and innovative new product introductions.
  • The balance sheet is the strongest in the company's history, supporting increased investments and strategic acquisitions.
  • Operations will run at high levels to improve service and increase inventories.

Headwinds

  • Industry seasonality will be more typical, unlike last year when demand was unusually high.
  • Record natural gas prices in Ceramic Europe are increasing net costs by approximately $25 million in the fourth quarter.
  • The fourth quarter calendar has 6% fewer days than the prior year.
  • Inflation and material availability pose temporary challenges.
  • There are continued staffing, supply, and transportation constraints across the businesses.

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 Q3 2021

Historical avgQ3 2021

+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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