Mohawk Industries (NYSE: MHK) is a Calhoun, Georgia-based company that designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodelling, and construction channels in the United States, Europe, Latin America, and around the world. Shares of Mohawk shot up 24% week-over-week as of close on Friday, July 26, 2024. The stock is now up 52% in the year-to-date period.
The stock gained momentum on the back of Mohawk’s second quarter (Q2) fiscal 2024 earnings release after markets closed on Thursday, July 25. In Q2 2024, the company reported net earnings of $157 million and earnings per share (EPS of $2.46. Meanwhile, adjusted net earnings were reported at $192 million while adjusted EPS stood at $3.00. This was up from adjusted net earnings of $176 million and adjusted EPS of $2.76 in the second quarter of fiscal 2023.
For the year-to-date period, Mohawk Industries reported adjusted net earnings of $310 million and adjusted EPS of $4.85. Meanwhile, net sales for the first six months of the fiscal year were reported at $5.5 billion – down 4.8% compared to the same period in fiscal 2023.
Overall, second quarter results exceeded management’s expectations in the first half of fiscal 2024. Looking forward, Mohawk Industries expects elevated interest rates, inflation, and weak housing sales to continue to be headwinds in the macroeconomic environment. Regardless, it expects to capitalize on solid demand going forward.
Mohawk Industries stock is trading in favourable value territory compared to its peers at the time of this writing, while also boasting a strong balance sheet.
