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

Curacao Firm Develops New Locking System   Full Article
Willemstad, Curacao, July 7, 2014 -- Innovations4Flooring, a technology company formed last year to supply flooring installation products, said it has developed a unique locking system for flooring.

UK Carpet Recycling Presents Awards   Full Article
Birmingham, England, July 7, 2014 -- Inspiration for manufacturers to design new carpet products for recycling or reuse at end of life was a key theme at Carpet Recycling UK’s sixth Annual Conference.

Estillon Wins Export Award in Netherlands   Full Article
Uden, The Netherlands, July 7, 2014 -- Estillon, a provider of subfloors, carpet underlays and accessories, took third prize for the Fenedex Frank Hauwert Trophy.

Mortgage Rates Lowest Since Last October   Full Article
Washington, DC, July 7, 2014 -- Mortgage rates hit 4.12% for a 30-year fixed rate last week, according to Freddie Mac.

Services Sector Growth Slows Slightly in June   Full Article
Tempe, AZ, July 3, 2014 -- Growth in the services sector of the economy slowed slightly in June, according to the Institute for Supply Management services index.

Planned Job Cuts Tumble in June   Full Article
Chicago, IL, July 3, 2014 -- Planned job cuts announced by U.S. companies in June fell to 31,434, the lowest level of the year and down 20% from a year ago, according to outplacement firm Challenger, Gray & Christmas.

Economy Adds 288,000 Jobs in June   Full Article
Washington, DC, July 3, 2014 -- Employers added 288,000 jobs in June, the Labor Department said Thursday.

Cersaie Show Set for Sept. 22-26 in Bologna   Full Article
Bologna, Italy, July 3, 2014 -- Cersaie—the world’s largest exhibition of ceramic tile and bathroom furnishings—will take place at the Bologna Exhibition Center in Bologna, Italy from Sept. 22-26.

NAFCD Issues Employee Compensation Report   Full Article
Chicago, IL, July 3, 2014 -- The North American Association of Floor Covering Distributors has released the 2014 NAFCD Employee Compensation Report.

E.J. Welch Promotes Two to Vice President   Full Article
St. Louis, MO, July 2, 2014 -- E.J. Welch Co. has promoted two employees to full time management positions.

Factory Orders Fall in May   Full Article
Washington, DC, July 2, 2014 -- Factory orders fell 0.5% in May, largely because of fewer orders for military goods, the Commerce Department said.

Private Sector Adds 281,000 Jobs in June   Full Article
Roseland, NJ, July 2, 2014 -- Private sector employment increased by 281,000 jobs from May to June, according to the June ADP National Employment Report.

Goodman, CEO of Space Flooring, Retires   Full Article
Glen Burnie, MD, July 2, 2014 -- Kent B. Goodman, owner and CEO of Space Flooring, has retired, according to distributor Haines.

Mortgage Application Volume Falls Last Week   Full Article
Washington, DC, July 2, 2014 -- Mortgage application volume fell slightly last week, according to the Mortgage Bankers Association.

Kinetex Wins Grand Prize for Innovation   Full Article
Dalton, GA, July 2, 2014 -- Kinetex textile composite flooring won the Grand Prize for Flooring Solutions in the 19th Annual Product Innovations Awards presented at NeoCon.

Interior Specialists Acquires Las Vegas Flooring Firm   Full Article
Carlsbad, CA, July 2, 2014 -- Interior Specialists, a provider of interior design and installation services for the homebuilding industry, said it has acquired DelGrosso Floor Covering in Las Vegas.

Tile Shop Holdings Names New CFO   Full Article
Minneapolis, MN, July 2, 2014 -- Tile Shop Holdings has named Kirk Geadelmann as its new chief financial officer.

FCICA Launches Commercial Installation Certification   Full Article
West Bloomfield, MI, July 1, 2014 -- FCICA, the Flooring Contractors Association, is launching an online certification program for all commercial flooring installation managers regardless of their affiliations.

Domotex Russia Set for April in Moscow   Full Article
Hannover, Germany, July 1, 2014 -- Domotex Russia will be held April 1-3 in Moscow.

Manufacturing Continues To Expand in June   Full Article
Tempe, AZ, July 1, 2014 -- Growth in the U.S. manufacturing sector slowed slightly in June, according to the Institute for Supply Management.