Mohawk Industries Beats Q2 Earnings Estimates Despite Margin Decline
August 1, 2023
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Mohawk Industries ($NYSE:MHK) is a leading global flooring provider, with products ranging from carpets and rugs to hardwood floors, vinyl, and ceramic tile. Nevertheless, the company managed to maintain its strong performance with increased investments in marketing and product innovation. Overall, Mohawk Industries has proven itself resilient in the face of a challenging environment. With improving economic conditions on the horizon, the company can continue to expect strong growth supported by their strategic investments.
Earnings
MOHAWK INDUSTRIES released its earning report for the second quarter of its fiscal year 2021, June 30, 2021. The report showed total revenue of 2953.83M USD and net income of 336.28M USD. Compared to the same quarter last year, total revenue declined by 6.3%, while net income increased by 19.9%.
Looking at the numbers over the last three years, MOHAWK INDUSTRIES’s total revenue decreased from 2953.83 M USD to 2950.43 M USD. Despite the decrease in margin, MOHAWK INDUSTRIES beat its earnings estimates for the quarter, showing continued growth and profitability.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mohawk Industries. More…
| Total Revenues | Net Income | Net Margin |
| 11.32k | -319.06 | 1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mohawk Industries. More…
| Operations | Investing | Financing |
| 987.37 | -1.01k | 393.45 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mohawk Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.59k | 6.37k | 128.87 |
Key Ratios Snapshot
Some of the financial key ratios for Mohawk Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.9% | 3.0% | -1.6% |
| FCF Margin | ROE | ROA |
| 3.9% | -1.3% | -0.8% |
Stock Price
On Monday, Mohawk Industries Inc. stock opened at $107.0 and closed at $106.3, a 0.7% decline from its prior closing price of $107.1. Despite the drop in stock price, Mohawk Industries reported second quarter earnings that beat analysts’ expectations.
In addition, Mohawk Industries also faces incremental tariffs on certain imported products that will likely impact their cost structure in the future. Despite the margin decline, Mohawk Industries managed to exceed analyst expectations and was able to grow their revenues and profits year-over-year. The company’s cost structure and exposure to tariffs will continue to be monitored in the coming quarters. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of MOHAWK INDUSTRIES to provide information about their wellbeing. The result of our research shows that MOHAWK INDUSTRIES is a medium risk investment in terms of both financial and business aspects according to our Risk Rating. Our analysis also revealed two risk warnings that can be found in the MOHAWK INDUSTRIES’ income statement and balance sheet. If you want to learn more about these potential risks, make sure to register on GoodWhale.com. Here, you can access the full report and get more insight into the investment potential of MOHAWK INDUSTRIES. More…
Peers
Mohawk Industries Inc is one of the largest flooring companies in the world. Its main competitors are MillerKnoll Inc, Burberry Group PLC, and Traeger Inc.
– MillerKnoll Inc ($NASDAQ:MLKN)
Founded in 1893, Miller Knoll is one of the oldest and largest accounting firms in the United States. With over 120 years of experience, the company provides a full range of services, including auditing, tax, and consulting. It has a market cap of 1.35B and a ROE of 6.45%. Miller Knoll is a publicly traded company on the New York Stock Exchange.
– Burberry Group PLC ($LSE:BRBY)
Burberry Group PLC is a British luxury fashion house headquartered in London, England. Its main products are clothing, fragrances, and cosmetics. As of 2022, Burberry Group PLC has a market capitalization of 7.15 billion pounds and a return on equity of 21.58%. The company was founded in 1856 by Thomas Burberry and has since become one of the most recognizable luxury brands in the world.
– Traeger Inc ($NYSE:COOK)
Traeger Inc is a publicly traded company with a market capitalization of 417.38 million as of 2022. The company has a return on equity of -26.37%. Traeger Inc is engaged in the business of manufacturing and selling wood pellet grills and related accessories.
Summary
Mohawk Industries reported its second-quarter earnings, beating estimates despite inflationary pressures and lower volume. Investors should take note of the company’s continued positive sales growth, despite tough market conditions and cost inflation.
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