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.
MHK in +4.35% Uptrend, rising for three consecutive days on June 10, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where MHK advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 09, 2025. You may want to consider a long position or call options on MHK as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MHK just turned positive on June 09, 2025. Looking at past instances where MHK's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
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 June 11, 2025 date and that indicates a change from an upward trend to a downward trend.
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 of 62 cases within the following month. The odds of a continued downward trend are .
MHK broke above its upper Bollinger Band on June 10, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MHK entered a downward trend on June 11, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (1.073) is normal, around the industry mean (7.048). MHK's P/E Ratio (270.270) is considerably higher than the industry average of (29.603). MHK's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.278). MHK has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.030). P/S Ratio (0.734) is also within normal values, averaging (1.000).
The Tickeron SMR rating for this company is (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 (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 83, placing this stock better 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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