NYSE$MHK

Mohawk Industries Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Mohawk Industries reported its highest ever quarterly sales, driven by strengthening residential purchases, with laminate, LVT, and sheet vinyl outperforming other flooring categories, though commercial activity remained weak.

Mohawk Industries reported a strong fourth quarter with net sales of $2.6 billion, a 9.0% increase, and EPS of $3.49. The results exceeded expectations due to strengthening residential purchases and restructuring initiatives, though commercial activity remained weak.

  • Q4 net sales increased by 9.0% as reported and 5.5% on a constant currency and days basis.
  • Net profit for Q4 was $248 million, with diluted EPS of $3.49.
  • Adjusted net earnings were $252 million, with EPS of $3.54, excluding restructuring, acquisition, and other charges.
  • Free cash flow for the period was approximately $250 million after capital investments of approximately $160 million.

Headline financials

Total Revenue

$2.64B

Previous: $2.43B+8.9%
EPS (adj)

$3.54

Previous: $2.25+57.3%
Operating Margin

8.7%

Previous: 6.0%+45.0%
Capital Expenditures

$160M

Previous: $140M+14.5%
Free Cash Flow

$248M

Previous: $300M-17.4%
Net Income

$248M

Previous: $265M-6.2%
Operating Income

$283M

Previous: $155M+82.6%
Gross Profit

$738M

Previous: $623M+18.5%
Cash & Equivalents

$769M

Previous: $135M+470.3%
Total Assets

$14.3B

Previous: $13.4B+7.0%
Stock-Based Comp

$5.14M

Previous: $6.39M-19.6%

Revenue & EPS history

Mohawk · Revenue · Quarterly

$2.64B

Q4 2020+8.9%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Mohawk · $2.64B total across 3 segments · Q4 2020

  • Flooring NA
    $963M+2.9%
  • Global Ceramic
    $920M+7.1%
  • Flooring ROW
    $759M+20.5%

Forward guidance

Assuming current conditions continue, Mohawk anticipates its first quarter adjusted EPS to be $2.69 to $2.79, excluding restructuring charges.

Tailwinds

  • Momentum of residential businesses should remain strong.
  • Commercial channel should slowly improve from its trough.
  • Benefit from structural improvements in costs.
  • Innovative new products will enhance mix.
  • Continued government subsidies and low interest rates should support economic recoveries, new home construction and residential remodeling.

Headwinds

  • Operations are taking actions to optimize throughput and reach desired service levels.
  • Plants fell short of the inventory build anticipated.
  • Most of the Covid restrictions around the world have not directly impacted the sales or installation of our products.
  • Seeing increasing inflation in most of product categories.
  • Raising prices in response to inflation.

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 2020

Historical avgQ4 2020

+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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