The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Mohawk Industries (NYSE: MHK) and the rest of the home furnishings stocks fared in Q4.
A healthy housing market is good for furniture demand as more consumers are buying, renting, moving, and renovating. On the other hand, periods of economic weakness or high interest rates discourage home sales and can squelch demand. In addition, home furnishing companies must contend with shifting consumer preferences such as the growing propensity to buy goods online, including big things like mattresses and sofas that were once thought to be immune from e-commerce competition.
The 5 home furnishings stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.9% since the latest earnings results.
Mohawk Industries (NYSE: MHK)
Established in 1878, Mohawk Industries (NYSE: MHK) is a leading producer of floor-covering products for both residential and commercial applications.
Mohawk Industries reported revenues of $2.64 billion, flat year on year. This print exceeded analysts’ expectations by 4.1%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ organic revenue estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
Commenting on the Company’s fourth quarter and full year, Chairman and CEO Jeff Lorberbaum stated, “Our fourth quarter results exceeded our expectations as sales actions, restructuring initiatives and productivity improvements benefited our performance. Additionally, the negative sales impact from U.S. hurricanes was limited to approximately $10 million. While residential demand remained soft in our markets, our product introductions last year and our marketing initiatives contributed to our sales performance around the globe.
Mohawk Industries pulled off the biggest analyst estimates beat of the whole group. Still, the market seems discontent with the results. The stock is down 10.3% since reporting and currently trades at $115.24.
Is now the time to buy Mohawk Industries? Access our full analysis of the earnings results here, it’s free.
Best Q4: Purple (NASDAQ: PRPL)
Founded by two brothers, Purple (NASDAQ: PRPL) creates sleep and home comfort products such as mattresses, pillows, and bedding accessories.
Purple reported revenues of $129 million, down 11.6% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 10.3% since reporting. It currently trades at $0.73.
Is now the time to buy Purple? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: Leggett & Platt (NYSE: LEG)
Founded in 1883, Leggett & Platt (NYSE: LEG) is a diversified manufacturer of products and components for various industries.
Leggett & Platt reported revenues of $1.06 billion, down 5.3% year on year, exceeding analysts’ expectations by 2.8%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations.
As expected, the stock is down 20.2% since the results and currently trades at $7.98.
Read our full analysis of Leggett & Platt’s results here.
La-Z-Boy (NYSE: LZB)
The prized possession of every mancave, La-Z-Boy (NYSE: LZB) is a furniture company specializing in recliners, sofas, and seats.
La-Z-Boy reported revenues of $521.8 million, up 4.3% year on year. This print surpassed analysts’ expectations by 1.2%. Taking a step back, it was a mixed quarter as it also logged a narrow beat of analysts’ Retail revenue estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
La-Z-Boy scored the fastest revenue growth among its peers. The stock is down 13.3% since reporting and currently trades at $39.24.
Read our full, actionable report on La-Z-Boy here, it’s free.
Somnigroup (NYSE: SGI)
Established through the merger of Tempur-Pedic and Sealy in 2012, Somnigroup (NYSE: SGI) is a bedding manufacturer known for its innovative memory foam mattresses and sleep products
Somnigroup reported revenues of $1.21 billion, up 3.2% year on year. This result beat analysts’ expectations by 1.9%. However, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates.
The stock is down 5.7% since reporting and currently trades at $62.81.
Read our full, actionable report on Somnigroup here, it’s free.
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