Mohawk (MHK, $135.78) beats Q4 earnings and net sales estimates; but demand challenges remain
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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
MHK's RSI Indicator ascends from oversold territory
The RSI Indicator for MHK moved out of oversold territory on September 22, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 32 similar instances when the indicator left oversold territory. In 22 of the 32 cases the stock moved higher. This puts the odds of a move higher at 69%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 02, 2026. You may want to consider a long position or call options on MHK as a result. In 59 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.
The Moving Average Convergence Divergence (MACD) for MHK just turned positive on October 01, 2026. Looking at past instances where MHK's MACD turned positive, the stock continued to rise in 35 of 52 cases over the following month. The odds of a continued upward trend are 67%.
Following a +1.35% 3-day Advance, the price is estimated to grow further. Considering data from situations where MHK advanced for three days, in 194 of 287 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
MHK may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
MHK moved below its 50-day moving average on September 21, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MHK crossed bearishly below the 50-day moving average on September 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 73%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MHK declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
The Aroon Indicator for MHK entered a downward trend on October 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 41 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 46 (best 1 - 100 worst), indicating steady price growth. MHK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 51 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.987) is normal, around the industry mean (4.844). P/E Ratio (16.481) is within average values for comparable stocks, (59.354). Projected Growth (PEG Ratio) (0.110) is also within normal values, averaging (1.123). Dividend Yield (0.000) settles around the average of (0.022) among similar stocks. P/S Ratio (0.705) is also within normal values, averaging (1.671).
The Tickeron SMR rating for this company is 81 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MHK’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock worse than average.
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General Information
a company, which engages in producing floor covering products for residential and commercial
Industry HomeFurnishings
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