Analyst Lowering Mohawk Estimates Due to Weather
New York, NY, April 2, 2014 -- Flooring industry analyst Stifel Nicolaus said it is lowering its first quarter estimates for Mohawk due to weather issues but is maintaining a "buy" rating on the stock.
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The firm said it is lowering its revenue estimate from 29% growth to 27% and dropping its earnings per share forecast from $1.21 to $1.13.
"We are not 'catching up' the lost business in the latter nine month period although we anticipate business will improve meaningfully as the weather improves," the firm said.
Stifel said its sources indicate that flooring activity in general has been hurt by the severe winter weather, which Mohawk acknowledged in its most recent conference call Feb. 21.
"Nearly every facet of the business was disrupted including retail traffic, construction activity and logistics and delivery of products," Stifel said.
"March is seasonally the most important month of the quarter and colder than average and snowier than average weather persisted in many regions of the country. Because of the poor weather in January and February, there was even more pressure than normal for business to strengthen in March and we think weather continued to impede progress."
The firm said it is confident that flooring activity will improve substantially once the weather improves.