NYSE$MHK

Mohawk Industries Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Mohawk Industries reported flat sales and strong cash generation.

Mohawk Industries reported Q4 2019 net sales of $2.4 billion, a decrease of 1.0% as reported. Net earnings were $265 million, and EPS was $3.68, including a one-time tax benefit of $136 million. Adjusted EPS was $2.25, excluding restructuring, acquisition and other charges. The company's operating and free cash flow for the quarter were $440 million and $300 million, respectively.

  • Net sales for the fourth quarter of 2019 were $2.4 billion, down 1.0% as reported.
  • Net earnings for the fourth quarter of 2019 were $265 million, and EPS was $3.68, including a one-time tax benefit of $136 million.
  • Adjusted net earnings were $162 million, and EPS was $2.25, excluding restructuring, acquisition and other charges.
  • Operating and free cash flow for the quarter were $440 million and $300 million, respectively.

Headline financials

Total Revenue

$2.43B

Previous: $2.45B-1.0%
EPS (adj)

$2.25

Previous: $2.53-11.1%
Operating Margin

6.0%

No prior period
Capital Expenditures

$140M

Previous: $151M-7.5%
Free Cash Flow

$300M

Previous: $136M+121.1%
Net Income

$265M

Previous: $229M+15.4%
Operating Income

$155M

Previous: $213M-27.4%
Gross Profit

$623M

Previous: $646M-3.6%
Cash & Equivalents

$135M

Previous: $119M+13.2%
Total Assets

$13.4B

Previous: $13.1B+2.2%
Stock-Based Comp

$6.39M

Previous: $4.69M+36.4%

Revenue & EPS history

Mohawk · Revenue · Quarterly

$2.43B

Q4 2019-1%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Mohawk · $2.42B total across 3 segments · Q4 2019

  • Flooring NA
    $936M
  • Global Ceramic
    $858M
  • Flooring ROW
    $630M

Forward guidance

Mohawk Industries expects EPS for the first quarter of 2020 to be $1.90 to $2.00, excluding any one-time charges. For the full year of 2020, the company expects improved year-over-year results, with performance accelerating during the second half of the year.

Tailwinds

  • Actions to increase sales and distribution
  • Actions to reduce costs
  • Actions to enhance utilization of new plants
  • LVT manufacturing capacity grows with higher speeds and efficiencies
  • Enhancing design and features and increasing sales of rigid and flexible offerings

Headwinds

  • LVT growth in the U.S.
  • Exchange rates
  • Excess global capacity
  • Market conditions remain challenging across most of our businesses and geographies
  • Limiting the traditional inventory build that we typically do in the first quarter, as we manage our production with market demand

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 Q4 2019

Historical avgQ4 2019

+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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