Financial Data and Key Metrics Changes - Net sales for Q4 2024 were approximately $2.6 billion, consistent with the prior year, with a slight increase of 1% as reported but a decrease of 1% on a constant basis [7][18] - Full year net sales were approximately $10.8 billion, down approximately 3% as reported and on a constant basis [8] - Adjusted EPS for Q4 was $1.95, in line with the prior year, while adjusted EPS for the full year was $9.70, reflecting a 6% increase despite a soft market [7][9][15] - Gross margin for the quarter was 23.6%, with an operating income margin of 4.6% on a reported basis [19] Business Line Data and Key Metrics Changes - Global Ceramic segment had sales of just over $1 billion, a 1.5% increase as reported, with operating income on an adjusted basis at 5.3%, a 50 basis point increase over the prior year [21] - Flooring North America segment reported sales of just over $930 million, a 2.8% increase as reported, but a decline of 0.5% on a constant basis, with adjusted operating income at 5.7%, a decline of 120 basis points [22][23] - Flooring Rest of the World segment had sales just shy of $700 million, a 2.1% decrease as reported and a decline of 4.8% on a constant basis, with an adjusted operating margin of 10%, declining 60 basis points [24] Market Data and Key Metrics Changes - 55% of sales were in the US, and 45% were in other geographies, with the company maintaining leading flooring positions on four continents [9] - The US housing market faced significant challenges, with existing home sales falling to a 30-year low, impacting consumer confidence and discretionary spending [10][11] - Central banks in various regions lowered interest rates, but the impact on housing turnover was negligible [11] Company Strategy and Development Direction - The company focused on stimulating sales through innovative product launches, marketing actions, and promotional programs to enhance productivity and reduce costs [14][15] - Restructuring actions initiated last year are expected to yield annualized savings of approximately $285 million by 2026 [43][120] - Capital expenditures in 2025 are planned at approximately $520 million, primarily focused on product innovation and cost reduction projects [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that markets will return to historical levels, although the timing of recovery remains unpredictable [41] - The company anticipates ongoing softness in markets during Q1 2025 due to elevated interest rates and weakness in housing [42] - Increased material and labor costs are expected to reduce margins, with management actively seeking ways to reduce expenses and improve processes [43][44] Other Important Information - The company generated free cash flow of $680 million for the full year and repurchased 1.3 million shares for $161 million [16] - The company ended the year with available liquidity of $1.6 billion and a debt leverage of 1.1 times [16] Q&A Session Summary Question: Q1 earnings guidance and seasonal trends - Management expects Q1 to Q2 to exhibit normal seasonal improvements, excluding impacts from the order management system [56] Question: Natural gas prices and pricing strategy - Management noted that US gas prices have increased, impacting costs, and it will be challenging to fully recover these costs through pricing [58][59] Question: Impact of Flooring North America system issues - The estimated impact on Q1 operating income from missed sales is between $25 million and $30 million, with extraordinary costs accounting for $15 million to $20 million [66] Question: Competitive dynamics and pricing pressures - Management acknowledged that underutilization in the category puts pressure on pricing, but operational performance has been strong [76] Question: Long-term margin goals - Management remains focused on achieving higher margins, but recovery is expected to take multiple years due to current market conditions [84][86] Question: Cash flow and M&A strategy - The company plans to increase investments in the business as the market improves and will continue to buy back shares as part of its cash usage strategy [90][91] Question: Capacity utilization and pricing - Current capacity utilizations are between 70% to 80%, and historically, higher utilization leads to better pricing power [115][116]

Core Insights - Mohawk Industries, Inc. (MHK) reported better-than-expected fourth-quarter results for 2024, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate [1][4] - The company's top line increased year over year, while the bottom line saw a decline [1][4] Financial Performance - Adjusted earnings per share (EPS) for Q4 were $1.95, surpassing the Zacks Consensus Estimate of $1.88 by 3.7%, but down from $1.96 in the same quarter last year [4] - Net sales reached $2.64 billion, exceeding the consensus estimate of $2.57 billion by 2.8% and increasing 1% year over year from $2.61 billion [4] - Adjusted gross margin contracted by 30 basis points to 24.4%, while adjusted operating margin decreased by 60 basis points to 6.1% [5] Segment Performance - Global Ceramic segment sales totaled $1.008 billion, up 1.5% year over year, with adjusted operating income increasing to $53.5 million [6] - Flooring North America segment net sales were $937.2 million, up 2.8% year over year, but adjusted operating profit decreased to $53.7 million [7] - Flooring Rest of the World segment net sales decreased 2.1% year over year to $691.8 million, with adjusted operating income down to $68.9 million [8] Annual Highlights - For the full year 2024, Mohawk reported net sales of $10.84 billion, down from $11.14 billion in 2023, while adjusted EPS increased to $9.70 from $9.19 [9] Cash Flow and Debt - As of December 31, 2024, Mohawk had cash and cash equivalents of $666.6 million, up from $642.6 million at the end of 2023 [11] - The company repurchased 1.3 million shares for $161 million during 2024 and generated free cash flow of $680 million, down from $716.3 million a year ago [11]

Mohawk Industries (MHK) reported $2.64 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 1%. EPS of $1.95 for the same period compares to $1.96 a year ago.The reported revenue represents a surprise of +2.77% over the Zacks Consensus Estimate of $2.57 billion. With the consensus EPS estimate being $1.88, the EPS surprise was +3.72%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Core Insights - Mohawk Industries reported quarterly earnings of $1.95 per share, exceeding the Zacks Consensus Estimate of $1.88 per share, but slightly down from $1.96 per share a year ago, resulting in an earnings surprise of 3.72% [1] - The company achieved revenues of $2.64 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.77% and showing an increase from $2.61 billion year-over-year [2] - Mohawk Industries has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of Mohawk Industries' stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.74 on revenues of $2.61 billion, while the estimate for the current fiscal year is $10.71 on revenues of $10.87 billion [7] Industry Context - The Textile - Home Furnishing industry, to which Mohawk Industries belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Mohawk's stock performance [5]

Financial Performance - Fourth quarter 2024 net earnings were $93 million, with an EPS of $1.48; adjusted net earnings were $123 million, and adjusted EPS was $1.95[2] - For the year ended December 31, 2024, net sales were $10.8 billion, a decrease of 2.7% compared to the prior year; adjusted net earnings were $617 million, and adjusted EPS was $9.70[3] - Consolidated net sales for the three months ended December 31, 2024, were $2,637.2 million, slightly up from $2,612.3 million in the same period of 2023[22] - Adjusted net sales for the three months ended December 31, 2024, were $2,585.7 million, after adjustments for constant shipping days and exchange rates[26] - Adjusted diluted earnings per share for the twelve months ended December 31, 2024, increased to $9.70 from $9.19 in 2023, representing a growth of 5.5%[23] Segment Performance - The Global Ceramic Segment's net sales increased by 1.5% as reported, with an operating margin of 3.4%[8] - Flooring North America Segment's net sales increased by 2.8% as reported, with an operating margin of 4.5%[10] - Global Ceramic segment adjusted operating income increased to $53.5 million, up from $48.0 million, marking a growth of 10.4%[30] - Flooring North America segment operating income fell to $42.2 million from $74.6 million, a decline of 43.4%[30] - Flooring ROW segment adjusted operating income decreased to $68.9 million from $74.6 million, a drop of 7.6%[31] Cash Flow and Liquidity - The company generated free cash flow of $680 million and repurchased 1.3 million shares for $161 million[7] - Net cash provided by operating activities for the three months ended December 31, 2024, was $397.0 million, an increase from $296.3 million in the same period of 2023[19] - Free cash flow for the twelve months ended December 31, 2024, was $679.5 million, compared to $716.3 million in 2023, reflecting a decrease of 5.5%[19] - The company ended 2024 with available liquidity of approximately $1.6 billion and a debt leverage of 1.1 times[7] Cost and Expenses - Selling, general and administrative expenses for the three months ended December 31, 2024, were $491.8 million, up from $473.6 million in 2023, reflecting an increase of 3.0%[29] - Adjusted operating income for Mohawk Consolidated was $159.8 million, down from $175.4 million year-over-year, representing a decrease of 8.9%[30] - Adjusted operating income as a percent of net sales for Mohawk Consolidated was 6.1%, down from 6.7% in the previous year[30] Tax and Liabilities - Income tax expense increased to $18.3 million from $14.2 million, an increase of 28.8%[33] - Adjusted income tax expense was $26.6 million, down from $33.9 million, a decrease of 21.5%[33] - Total liabilities reduced to $5,221.7 million as of December 31, 2024, down from $5,930.7 million in 2023, indicating a decrease of about 12%[21] Future Outlook - Restructuring actions are expected to generate annualized savings of approximately $285 million by 2026[11] - The first quarter adjusted EPS guidance is projected to be between $1.34 and $1.44, including an estimated impact of $0.35 due to system issues[12] - The U.S. dollar's strength is expected to negatively impact translated results in 2025[12]

Core Insights - Mohawk Industries reported fourth quarter 2024 net earnings of $93 million and earnings per share (EPS) of $1.48, with adjusted net earnings of $123 million and adjusted EPS of $1.95, reflecting a slight decrease in net sales compared to the previous year [1][2][3] - For the full year 2024, net earnings were $518 million with an EPS of $8.14, while adjusted net earnings were $617 million and adjusted EPS was $9.70, indicating a decrease in net sales of 2.7% compared to 2023 [2][3][4] Financial Performance - Fourth quarter net sales were $2.6 billion, unchanged from the previous year, but adjusted net sales decreased by 1.0% [1][2] - For the year ended December 31, 2024, net sales totaled $10.8 billion, down from $11.1 billion in 2023, primarily due to a net loss of $440 million in 2023 impacted by non-cash impairment charges [2][4] - The company generated free cash flow of $680 million and repurchased 1.3 million shares for $161 million, ending the year with liquidity of approximately $1.6 billion and a debt leverage of 1.1 times [5][6] Market Conditions - The fourth quarter reflected ongoing industry challenges, including limited consumer spending on large discretionary purchases and constrained consumer confidence due to inflation and economic uncertainty [4][5] - Home sales remained suppressed globally, with U.S. existing home sales at a 30-year low, and new home construction faced constraints from high costs and interest rates [4][5][10] - The company noted that while residential demand was soft, product introductions and marketing initiatives contributed positively to sales performance [3][4] Segment Performance - The Global Ceramic Segment saw a 1.5% increase in net sales, with an operating margin of 3.4% as reported [6][9] - The Flooring Rest of the World Segment experienced a 2.1% decrease in net sales, with an operating margin of 8.8% [7][9] - Flooring North America Segment's net sales increased by 2.8% as reported, but decreased by 0.5% on an adjusted basis, with an operating margin of 4.5% [9][10] Strategic Initiatives - The company initiated significant restructuring actions and operational improvements aimed at lowering costs, which are expected to yield annualized savings of approximately $285 million by 2026 [5][10] - Investments in innovative products and marketing strategies are being emphasized to stimulate sales amid competitive pressures [4][5][10] - The company is restructuring its Mexican ceramic business to enhance operational performance, projected to save around $20 million annually [10][11] Future Outlook - The company anticipates ongoing softness in markets during the first quarter of 2025 due to elevated interest rates and housing market weakness, with expected adjusted EPS between $1.34 and $1.44 [10][11] - Despite current challenges, the company remains confident in a future recovery of the flooring market, driven by increased home construction and remodeling needs [11][12]

Wall Street analysts forecast that Mohawk Industries (MHK) will report quarterly earnings of $1.88 per share in its upcoming release, pointing to a year-over-year decline of 4.1%. It is anticipated that revenues will amount to $2.57 billion, exhibiting a decline of 1.8% compared to the year-ago quarter.The current level reflects a downward revision of 0.6% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised ...

Mohawk Industries, Inc. (MHK) is scheduled to report results for the fourth quarter of 2024 on Feb. 6, after market close.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company’s adjusted earnings topped the Zacks Consensus Estimate and rose 6.6% year over year. Net sales beat the consensus estimate by 0.5% but decreased 1.7% from the year-ago level.MHK’s earnings surpassed expectations in each of the trailing four quarters, delivering an average sur ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Mohawk Industries (MHK) . This company, which is in the Zacks Textile - Home Furnishing industry, shows potential for another earnings beat.This flooring maker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 4.52%.For ...

Company Overview - Mohawk Industries, Inc. is a leading global manufacturer of flooring products, enhancing both residential and commercial spaces. The company produces a variety of flooring types including carpet, rugs, ceramic tile, laminate, wood, stone, and vinyl flooring. It operates globally with a presence in countries such as Australia, Brazil, Canada, Europe, India, Malaysia, Mexico, New Zealand, Russia, and the United States [11]. Investment Ratings - Mohawk Industries has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid overall rating [11]. - The company also has a Value Style Score of A, attributed to attractive valuation metrics, including a forward P/E ratio of 11.55, which is appealing to value investors [12]. Earnings Estimates - In the last 60 days, two analysts have revised their earnings estimates upwards for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.02 to $9.64 per share [12]. - Mohawk Industries has demonstrated an average earnings surprise of 6.1%, suggesting a positive trend in earnings performance [12].