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Investing.com -- Mohawk Industries , Inc. (NYSE:MHK) reported second quarter earnings that exceeded analyst expectations, sending shares up 2.9% as investors responded positively to the flooring manufacturer’s ability to navigate challenging market conditions.
The company posted adjusted earnings per share of $2.77 for the second quarter, surpassing the analyst estimate of $2.60. Revenue came in at $2.8 billion, slightly above the consensus estimate of $2.76 billion, though essentially flat compared to the same period last year. On a constant currency and day-adjusted basis, sales decreased 0.8% YoY.
Mohawk’s performance reflects its ongoing operational improvements and cost containment initiatives amid pricing pressures from lower market volumes. The company generated approximately $125 million in free cash flow during the quarter and repurchased about 393,000 shares for approximately $42 million.
"In challenging conditions across our regions, our results reflect the impact of our ongoing operational improvements, cost containment actions and market development initiatives," said Jeff Lorberbaum, Chairman and CEO of Mohawk Industries.
The company’s Global Ceramic Segment saw sales increase 0.5% as reported, while Flooring Rest of the World sales rose 1.0%. Flooring North America sales declined 1.2% compared to the prior year.
Looking ahead, Mohawk provided third quarter guidance below analyst expectations, projecting adjusted EPS between $2.56 and $2.66, compared to the consensus estimate of $2.72. The company noted that input cost pressures will continue, with the impact peaking in the third quarter.
Mohawk expects to benefit from U.S. trade policy changes, as approximately 85% of its U.S. sales come from goods produced in North America. The company plans to manage the impact of tariffs through supply chain enhancements, cost optimization, and price adjustments.
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