Mohawk Q1 2022 Earnings Report
Key Takeaways
Mohawk Industries reported a strong first quarter in 2022, with net sales reaching a record $3.0 billion, a 13.0% increase year-over-year. Net earnings were $245 million, with an EPS of $3.78. The company benefited from higher pricing, growth in its ceramic businesses, and an improving commercial sector.
Net sales for Q1 2022 reached $3.0 billion, a 13.0% increase as reported and 17.3% on a constant currency and days basis.
Net earnings were $245 million, with a diluted EPS of $3.78.
Global Ceramic Segment sales increased by 14.5% as reported and 18.5% on a constant days and currency basis.
Company acquired 2.1 million shares during the first quarter for a total of $307 million.
Mohawk
Mohawk
Mohawk Revenue by Segment
Forward Guidance
The company anticipates its second quarter adjusted EPS to be $4.25 to $4.35, excluding any restructuring charges.
Positive Outlook
- Housing supply is historically low, and rising mortgage rates are spurring families to purchase homes sooner.
- Remodeling should be supported by continued existing home sales, higher home equity and the upgrading of homes purchased over the past two to three years.
- The commercial sector will continue its rebound with people returning to pre-pandemic routines.
- Improvements in the supply of constrained materials which should increase production levels.
- Capital investments, when completed, will relieve specific capacity constraints and increase offering.
Challenges Ahead
- Inflation and interest rate pressures.
- Historic rise in European energy costs continues to impact business.
- Inflation continues to rise.
- Near-term uncertainties.
- Geopolitical tensions
Revenue & Expenses
Visualization of income flow from segment revenue to net income