NYSE$MHK

Mohawk Industries Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Mohawk Industries experienced a net loss due to impairment charges, while sales increased slightly, driven by price increases and commercial sector strength.

Mohawk Industries reported a net loss of $534 million for Q3 2022, including $696 million in non-cash impairment charges. Adjusted EPS was $3.34. Net sales increased by 3.6% to $2.9 billion, or 8.3% on a constant basis. The company is managing through economic challenges by optimizing costs, productivity, and inventory levels, while also investing in long-term growth and strategic acquisitions.

  • Net sales increased by 3.6% to $2.9 billion, driven by price increases and strength in the commercial sector.
  • Reported a net loss of $534 million, including $696 million in non-cash impairment charges.
  • Adjusted EPS was $3.34, excluding impairment and other non-recurring charges.
  • The company is focused on managing costs and optimizing operations amid economic challenges.

Headline financials

Total Revenue

$2.92B

Previous: $2.82B+3.6%
EPS (adj)

$3.34

Previous: $3.95-15.4%
Operating Margin

-51.0%

Previous: 17.4%-393.1%
Capital Expenditures

-$430M

Previous: -$375M-14.6%
Free Cash Flow

-$964M

Previous: -$104M-825.2%
Net Income

-$534M

Previous: $271M-297.1%
Operating Income

-$506M

Previous: $360M-240.5%
Gross Profit

$714M

Previous: $837M-14.8%
Cash & Equivalents

$327M

Previous: $1.13B-71.0%
Total Assets

$13.8B

Previous: $14.5B-4.5%
Stock-Based Comp

$6.18M

Previous: $7.43M-16.8%

Revenue & EPS history

Mohawk · Revenue · Quarterly

$2.92B

Q3 2022+3.6%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Mohawk · $2.92B total across 3 segments · Q3 2022

  • Global Ceramic
    $1.1B+9.8%
  • Flooring NA
    $1.09B+3.7%
  • Flooring ROW
    $731M-4.8%

Forward guidance

Mohawk Industries anticipates demand will slow further in the fourth quarter, leading to reduced production and increased unabsorbed overhead. The company expects adjusted EPS for the fourth quarter to be $1.40 to $1.50, excluding any restructuring or other one-time charges.

Tailwinds

  • Increasing promotional activity to enhance sales.
  • Introducing differentiated collections.
  • Reacting to competitive actions.
  • Executing restructuring actions to lower costs.
  • Completing capital projects critical to near-term performance.

Headwinds

  • Demand is expected to slow further in the fourth quarter.
  • Reduced production will result in greater unabsorbed overhead.
  • Flooring projects are being deferred in Europe, compressing industry volumes.
  • Raising inventories of specific products ahead of expected higher energy costs this winter in Europe.
  • The strengthening U.S. dollar will continue to reduce translated results.

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 2022

Historical avgQ3 2022

+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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