Despite a few headwinds, Mohawk Industries, Inc.’s fourth quarter earnings and net sales managed to edge past analysts’ estimates.
For the three months ending December, the flooring manufacturers’ adjusted earnings per share of $2.53 (excluding restructuring, acquisition and other charges) beat Zacks Consensus Estimate of $2.49 per share. However, the per-share earnings were -26% lower compared to the year-ago quarter.
Mohawk’s net sales of $2.45 billion was higher than analysts’ expectation by 0.3%. The figure also marked a +3% year-over-year increase.
The company had its share of challenges in the fourth quarter. There was a spike in material costs and a softening of demand for LVT flooring.
For the full year 2018, the company’s adjusted earnings came in at $12.33 per share in 2018, lower than the preceding year’s $13.61 a share. Net sales increased +5% from 2017.
For the first quarter 2019, Mohawk projects earnings-per-share of $2.02-$2.12, excluding one-time charges. The company expects to alter production rates according to reduced demand in several of its markets. But it wants to continue to focus on innovation and improvement in manufacturing processes.