We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Mohawk Industries (MHK) Disappoint in Q4 Earnings?
Read MoreHide Full Article
Mohawk Industries, Inc. (MHK - Free Report) is set to report fourth-quarter 2016 results on Feb 9, after market close.
Last quarter, the company posted a positive earnings surprise of 1.16%. Meanwhile, it reported positive earnings surprises in all of the past four quarters, with the average being 2.47%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
As mentioned during the third-quarter earnings call, Mohawk Industries will have one extra day in the fourth quarter compared to last year. The company also expects sales to improve in the to-be-reported quarter.
In order to achieve long-term growth, the company is expanding its differentiated product line and working on the capacity and efficiency of its operations. Mohawk Industries is also introducing distinctive collections to boost sales. It is aggressively implementing productivity improvements across all businesses and bringing new capacity online to support growth.
The company is currently exploring numerous investment options to ramp up expansion, including green field opportunities and acquisitions. Taking these factors into account, the EPS guidance for the fourth quarter is $3.16 to $3.25, which represents a 12% to 15% increase over the fourth-quarter 2015 EPS figure, excluding restructuring charges.
Notably, for the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $3.22, reflecting a 14.1% year-over-year increase. Meanwhile, our estimate for revenues is pegged at $2.15 billion, implying a 7.4% increase.
Earnings Whispers
Our proven model does not conclusively show that Mohawk Industries will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is -0.62% as the Most Accurate estimate of $3.20 is lower than the Zacks Consensus Estimate of $3.22. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Mohawk Industries carries a Zacks Rank #4 (Sell). Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some companies in the construction sector that can be considered as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Summit Materials, Inc. (SUM - Free Report) , expected to report quarterly results on Feb 22, has an Earnings ESP of +8.70% and a Zacks Rank #3.
Lyon William Homes has an Earnings ESP of +1.52% and a Zacks Rank #2. The company is scheduled to release its results on Feb 22.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Mohawk Industries (MHK) Disappoint in Q4 Earnings?
Mohawk Industries, Inc. (MHK - Free Report) is set to report fourth-quarter 2016 results on Feb 9, after market close.
Last quarter, the company posted a positive earnings surprise of 1.16%. Meanwhile, it reported positive earnings surprises in all of the past four quarters, with the average being 2.47%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
As mentioned during the third-quarter earnings call, Mohawk Industries will have one extra day in the fourth quarter compared to last year. The company also expects sales to improve in the to-be-reported quarter.
In order to achieve long-term growth, the company is expanding its differentiated product line and working on the capacity and efficiency of its operations. Mohawk Industries is also introducing distinctive collections to boost sales. It is aggressively implementing productivity improvements across all businesses and bringing new capacity online to support growth.
The company is currently exploring numerous investment options to ramp up expansion, including green field opportunities and acquisitions. Taking these factors into account, the EPS guidance for the fourth quarter is $3.16 to $3.25, which represents a 12% to 15% increase over the fourth-quarter 2015 EPS figure, excluding restructuring charges.
Notably, for the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $3.22, reflecting a 14.1% year-over-year increase. Meanwhile, our estimate for revenues is pegged at $2.15 billion, implying a 7.4% increase.
Earnings Whispers
Our proven model does not conclusively show that Mohawk Industries will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is -0.62% as the Most Accurate estimate of $3.20 is lower than the Zacks Consensus Estimate of $3.22. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Mohawk Industries carries a Zacks Rank #4 (Sell). Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Mohawk Industries, Inc. Price and EPS Surprise
Mohawk Industries, Inc. Price and EPS Surprise | Mohawk Industries, Inc. Quote
Stocks to Consider
Here are some companies in the construction sector that can be considered as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Century Communities, Inc. (CCS - Free Report) , slated to report its quarterly results on Feb 14, has an Earnings ESP of +14.93% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Summit Materials, Inc. (SUM - Free Report) , expected to report quarterly results on Feb 22, has an Earnings ESP of +8.70% and a Zacks Rank #3.
Lyon William Homes has an Earnings ESP of +1.52% and a Zacks Rank #2. The company is scheduled to release its results on Feb 22.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>