Earnings and a Bullish Upgrade Sent This Flooring Company's Stock Flying

Shares of Mohawk Industries (MHK) surged Friday aft nan institution reported second-quarter financial results — and sewage a bullish pat connected nan backmost from analysts astatine Bank of America.

Mohawk's stock, which roseate astir 20% connected Friday, jumped aft nan flooring shaper reported second-quarter EPS of $2.46 and nett income of $2.8 billion, successful statement pinch analysts’ expectations, per Visible Alpha. The shares besides sewage a large upgrade from nan Bank of America analysts, who lifted their standing to "buy" from "underperform," and raised their price target to $177 from $120. That’s a much than 31% premium complete nan company’s Thursday closing price. 

The institution is poised to use from a betterment successful nan world ceramic sector, nan analysts wrote Friday.

“We are now much assured that margins will proceed to amended contempt nan challenging macro backdrop,” nan analysts said. “We expect a betterment successful North America and world ceramic conception margins disconnected depressed levels and stabilization successful [the] remainder of [the] world driven by amended productivity.”

BofA raised its 2024 earnings per stock (EPS) projection to $10.31 from $9.23, good supra nan Visible Alpha Consensus, and its 2025 EPS projection to $11.95 from $10.90. 

Mohawk besides announced that ongoing restructuring initiatives will make savings of $100 cardinal per twelvemonth going forward, and $20 cardinal to $25 cardinal successful 2024. That’s connected apical of $150 cardinal successful annualized savings announced successful nan company’s 2023 yearly report, BofA noted.

Mohawk's shares are up astir 55% this year.