Mohawk(US:MHK) ZACKS·2025-10-20 12:46Core Insights - Mohawk Industries, Inc. (MHK) is set to report its third-quarter results for 2025 on October 23, with expectations of adjusted EPS in the range of $2.56-$2.66, reflecting a decline from $2.90 in the prior year [1][6] - The Zacks Consensus Estimate for third-quarter EPS remains unchanged at $2.67, indicating a 7.9% decline year-over-year, while net sales are projected at $2.72 billion, a slight increase of 0.2% from the previous year [2][7] Financial Performance - In the last reported quarter, MHK's adjusted EPS and net sales exceeded the Zacks Consensus Estimate by 5.7% and 0.4%, respectively, although the top line remained flat year-over-year and the bottom line decreased by 7.7% [1] - The company has consistently surpassed earnings expectations in the past four quarters, with an average surprise of 4.4% [1] Sales and Market Trends - MHK's top-line performance for the third quarter is expected to be relatively flat year-over-year, benefiting from favorable pricing, product mix, and foreign exchange rates, but offset by weaker market volumes in the residential sector [3] - The projected net sales in the Global Ceramic segment are expected to increase by 0.5% to $1.06 billion, while Flooring North America is anticipated to decline by 0.9% to $965.6 million, and Flooring Rest of World is expected to rise by 0.2% to $688.6 million [4] Cost and Margin Pressures - The bottom line is expected to decline year-over-year due to higher input costs, restructuring, acquisition-related costs, and lower sales volume, leading to pressure on margins [5] - The adjusted gross margin is projected to contract by 120 basis points to 25%, and the adjusted operating margin is expected to decrease by 100 basis points to 7.8% [6] Earnings Prediction - The model does not predict an earnings beat for MHK this quarter, with an Earnings ESP of -1.02% and a Zacks Rank of 4 (Sell) [7][8]