** charts after earnings **
Mohawk (MHK) Q3 Earnings Beat, Sales Miss, Q4 View Tepid
Mohawk Industries, Inc. MHK reported mixed results for third-quarter fiscal 2021 (ended Oct 2). The top line lagged the Zacks Consensus Estimate but the bottom line marginally topped the same. Nonetheless, both the metrics improved on a year-over-year basis.
Third-quarter results were driven by robust housing sales and remodeling activities across the world. Commercial projects are improving on the back of global economic recovery. Mohawk’s strategies to enhance organizational flexibility, reduce product and operational complexity as well as align pricing with costs aided third-quarter growth.
Jeffrey S. Lorberbaum, chairman and CEO of Mohawk, said, “Rather than improving as expected, the availability of labor, materials and transportation became more challenging, resulting in higher costs in the period. Tight chemical supplies, in particular, reduced the output of our LVT, carpet, laminate and board panels. For the near term, we do not foresee significant changes in these external pressures. Due to supply shortages, government regulations and political issues, natural gas costs in Europe are presently about four times higher than earlier in the year. This adds a temporary challenge to our European businesses as the higher costs are reflected in gas, electricity and materials.”
Net sales of $2.82 billion lagged the consensus estimate of $2.95 billion by 4.4% but increased 9.4% from the year-ago figure of $2.57 billion. On a constant-currency basis, net sales were up 8.7% year over year.
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