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Dec 31, 2020
Mohawk Q4 2020 Earnings Report
Mohawk Industries reported its highest ever quarterly sales, driven by strengthening residential purchases, with laminate, LVT, and sheet vinyl outperforming other flooring categories, though commercial activity remained weak.
Key Takeaways
Mohawk Industries reported a strong fourth quarter with net sales of $2.6 billion, a 9.0% increase, and EPS of $3.49. The results exceeded expectations due to strengthening residential purchases and restructuring initiatives, though commercial activity remained weak.
Q4 net sales increased by 9.0% as reported and 5.5% on a constant currency and days basis.
Net profit for Q4 was $248 million, with diluted EPS of $3.49.
Adjusted net earnings were $252 million, with EPS of $3.54, excluding restructuring, acquisition, and other charges.
Free cash flow for the period was approximately $250 million after capital investments of approximately $160 million.
Revenue by Segment
Forward Guidance
Assuming current conditions continue, Mohawk anticipates its first quarter adjusted EPS to be $2.69 to $2.79, excluding restructuring charges.
Positive Outlook
- Momentum of residential businesses should remain strong.
- Commercial channel should slowly improve from its trough.
- Benefit from structural improvements in costs.
- Innovative new products will enhance mix.
- Continued government subsidies and low interest rates should support economic recoveries, new home construction and residential remodeling.
Challenges Ahead
- Operations are taking actions to optimize throughput and reach desired service levels.
- Plants fell short of the inventory build anticipated.
- Most of the Covid restrictions around the world have not directly impacted the sales or installation of our products.
- Seeing increasing inflation in most of product categories.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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