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 surprise of 6.1%.

Mohawk Industries, Inc. Price and EPS Surprise

Mohawk Industries, Inc. price-eps-surprise | Mohawk Industries, Inc. Quote

How Are Estimates Placed for Mohawk Stock?

The Zacks Consensus Estimate for Mohawk’s earnings per share (EPS) has increased to $1.88 from $1.86 over the past seven days. The estimated figure indicates a decrease of 4.1% from the year-ago level.

The consensus estimate for net sales is pegged at $2.57 billion, indicating a 1.8% decrease from the year-earlier level.

Factors That May Influence Mohawk’s Quarterly Results

Mohawk’s top line is expected to have declined year over year due to the ongoing residential market softness due to elevated mortgage rates and other macroeconomic challenges. Furthermore, weaknesses in the remodeling projects are likely to have negatively impacted the growth trend to some extent. The company’s commercial channel and the innovative product offering approach, which have been faring well, are expected to have been overshadowed by the aforementioned headwinds. Rising natural gas prices, unfavorable FX translation, and a slightly lower volume growth rate assumption in the Flooring North America segment, given the high current mortgage rate backdrop, are expected to have weighed on Mohawk’s fourth-quarter performance as well.

Our model expects fourth-quarter net sales in the Global Ceramic (which accounted for 38.9% of third-quarter net sales), Flooring North America (35.8%) and Flooring Rest of World (25.3%) segments to decline 1.8%, 0.6% and 4.7% to $975.6 million, $906.9 million and $673.3 million year over year, respectively.

Meanwhile, the bottom line of MHK is expected to have dropped in the to-be-reported quarter, given revenue pressure, FX and natural gas inflation year over year. Even though market pressure on pricing, mix and foreign exchange are headwinds, Mohawk’s efforts toward cost containment and realizing benefits through restructuring actions are likely to have more than offset the same.

The company expects adjusted EPS to be in the range of $1.77-$1.87 (excluding restructuring and other charges).

We expect the adjusted gross margin to remain almost on par year over year at 24.7%. The adjusted operating margin is expected to decrease to 6.1% from 6.7% reported a year ago.

What Our Model Unveils for Mohawk

Our proven model predicts an earnings beat for Mohawk this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: MHK has an Earnings ESP of +1.95%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3.

Other Stocks Poised to Beat on Earnings

Here are a few other stocks from the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat this reporting cycle.

Life Time Group Holdings, Inc. LTH has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.

Trip.com Group Limited TCOM currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.

TCOM reported earnings beat in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the to-be-reported quarter are expected to decrease 7.1%.

Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.

RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beat in each of the trailing four quarters, the average surprise being 225%.

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