Analyst Stifel Nicolaus is Bullish on Mohawk

Calhoun, GA, Dec. 13, 2013 -- Analyst Stifel Nicolaus said it is raising its 2014 earnings estimates for Mohawk Industries after meeting with the company's chief financial officer.

Stifel said it is raising its full-year estimate from $7.69 per share to $8.15 "to reflect much greater contribution margins in carpet and higher synergies in laminate and ceramic than we had originally modeled."

It has a "buy" rating on Mohawk, which will be added to the S&P 500 later this month.

Mohawk, Stifel said, should benefit from a continuing rebound in the residential and commercial markets in the U.S., which comprise approximately 70% of consolidated revenues.

Mohawk, which has recently acquired Pergo, Spano, and Marazzi has been integrating the businesses, and Stifel believes Marazzi has the greatest potential.

"Mohawk is now hitting on many cylinders after years of stagnant demand," Stifel said.

"As we have noted before, once volumes began to expand and mix improved, we expected to see good margin expansion. The past two quarters are evidence that these trends are underway. It doesn't hurt that raw materials have stabilized, allowing previous price increases to catch up to earlier cost inflation."

Stifel believes that management is more optimistic than at any time since 2006.

Carpet margins the past two quarters have been well in excess of the 20% long-term goal and will likely be closer to 30% in 2014, Stifel said, thanks in part to the "soft revolution."

Mohawk ceramic sales are just beginning to benefit from the Marazzi acquisition, Stifel said.



Other Archived Articles

Consumer Sentiment Falls from January Peak   Full Article
Ann Arbor, MI, Feb. 13, 2015 -- Consumer sentiment declined in February after reaching an 11-year high in January, according to the Thomson Reuters/University of Michigan index.

Mohawk Group Sponsors HPD Collaborative   Full Article
Calhoun, GA, Feb. 13, 2015 -- Mohawk Group said it has become part of a growing list of “Visionary” sponsors of the Health Product Declaration Collaborative.

Earthwerks Signs Distributor Longust   Full Article
Houston, TX, Feb. 13, 2015 -- EarthWerks said it has signed a distribution agreement with Longust Distributing, Inc. to cover the southwestern U.S.

NAHB Analyzes Data on Boomerang Millennials   Full Article
Washington, DC, Feb. 13, 2015 -- A recent study of “Boomerang Millennials” may have important implications for this key demographic and what it means for the housing market, according to the National Association of Home Builders.

Metroflor Names Langstaff Design Director   Full Article
Norwalk, CT, Feb. 13, 2015 – Metroflor Corp. said that Robert Langstaff has been named the company's first director of design.

More Designers, Architects Attend Surfaces   Full Article
Dallas, TX, Feb. 12, 2015 -- Informa Exhibitions U.S. said that attendance at this year's International Surface Event was comparable to the 2014 show.

Retail Sales Decline in January   Full Article
Washington, DC, Feb. 12, 2015 -- Retail sales fell 0.8% last month, according to the Commerce Department.

Jobless Claims Edge Up Last Week   Full Article
Washington, DC, Feb. 12, 2015 -- Initial applications for unemployment benefits last week rose 25,000 to a seasonally adjusted 304,000, the Labor Department said.

Milton Warman, Coloramic Tile Founder, Dies   Full Article
Chicago, IL, Feb. 12, 2015 -- Milton Warman, 92, founder of Coloramic Tile and Carpet Fair, died Feb. 7.

House Price Growth Steady in Most Markets   Full Article
Washington, DC, Feb. 12, 2015 -- The majority of metropolitan areas experienced steady but slightly stronger price growth in the fourth quarter, according to the latest quarterly report by the National Association of Realtors.

Stonewood Floors Names Martin Senior Vice President   Full Article
Everett, WA, Feb. 11, 2015 -- Daniel Martin been named senior vice president for Stonewood Floors.

Mortgage Application Volume Declines Last Week   Full Article
Washington, DC, Feb. 11, 2015 -- Mortgage applications last week decreased 9% from one week earlier, according to the Mortgage Bankers Association.

December Foreclosures Lowest Since 2007   Full Article
Irvine, CA, Feb. 11, 2015 -- There were 39,000 completed foreclosures nationwide in December, according to real estate information firm CoreLogic.

Nydree Expands Distribution Agreement With Spartan   Full Article
Forest, VA, Feb. 11, 2015 -- Engineered wood flooring maker Nydree Flooring has chosen Spartan Surfaces to distribute its products in Virginia, Washington, D.C., and Maryland.

Mohawk, Shaw, Tandus/Centiva Again on Training 125 List   Full Article
New York, NY, Feb. 11, 2015 -- Training magazine has ranked Mohawk Industries 14th, Shaw Industries 54th, and Tandus/Centiva 66th on its annual list of top training organizations.

NeoCon East Moving to Philadelphia   Full Article
Chicago, IL, Feb. 11, 2015 -- The 13th edition of NeoCon East will be held Oct. 28-29 in Philadelphia.

Small Business Optimism Down Slightly in January   Full Article
Washington, DC, Feb. 10, 2015 -- Optimism among small business owners fell in January, according to the National Federation of Independent Business.

Job Openings at Highest Level Since 2001   Full Article
Washington, DC, Feb. 10, 2015 -- Job openings increased to more than 5 million in December, according to the Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics.

Wholesale Inventories Edge Up in December   Full Article
Washington, DC, Feb. 10, 2015 -- U.S. wholesale inventories ticked up in December but below expectations, according to the Commerce Department.

Congoleum Names O'Connor CFO   Full Article
Mercerville, NJ, Feb. 10, 2015 -- Congoleum Corporation said that Chris O’Connor has been named chief financial officer.