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Market Overview

Earnings Outlook for Mohawk Industries


Mohawk Industries (NYSE:MHK) unveils its next round of earnings this Thursday, February 11. Get prepared with Benzinga's ultimate preview for Mohawk Industries's Q4 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Mohawk Industries EPS is expected to be around $2.87, according to sell-side analysts. Sales will likely be near $2.49 billion. In the same quarter last year, Mohawk Industries reported earnings per share of $2.25 on sales of $2.42 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 27.56%. Sales would be up 2.68% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 2.10 -0.09 1.66 2.20
EPS Actual 3.26 0.37 1.66 2.25
Revenue Estimate 2.47 B 1.86 B 2.29 B 2.42 B
Revenue Actual 2.58 B 2.05 B 2.29 B 2.42 B

Stock Performance

Over the last 52-week period, shares are up 19.46%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Mohawk Industries is scheduled to hold the call at 11:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings