Mohawk Industries stock rises 5% as flooring company 'adapting' to leaner times
Mohawk Industries Inc. shares rose nearly 5% in the aftermarket Thursday after the carpet and flooring company reported quarterly earnings and sales above Wall Street expectations, saying its commercial side continued to show more resilience as compared with residential. Mohawk earned $80 million, or $1.26 a share, in the quarter, compared with $245 million, or $3.78 a share, in the year-ago quarter. Adjusted for one-time items, Mohawk earned $1.75 a share. Revenue dropped 7% to $2.8 billion, the company said. Analysts polled by FactSet expected the company to report adjusted EPS of $1.30 on sales of $2.7 billion. Chief Executive Jeffrey S. Lorberbaum said that the business was "adapting our strategies to a more challenging environment," including managing costs. Mohawk kept higher pricing and a stronger mix, with the commercial side of the business still stronger than residential, the executive said, as home remodeling projects are being postponed and new housing construction is hit by higher mortgage rates. Mohawk shares ended the regular trading day up 4%.
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