Hot news – Flooring manufacturer Mohawk plunged Friday following a dour earnings report that reinforced investor concerns about both a slowdown in U.S. housing activity and peak earnings growth.
Mohawk Industries (NYSE:MHK) fell 20% after its third-quarter earnings came up short of estimates and fourth-quarter earnings per share guidance of $2.45 to $2.60 was nearly 30% below the consensus estimate at the midpoint.
The flooring company blamed the results on weakening demand, inflation and pricing pressures, compressed margins owing to rising competition, a declining product mix and lower manufacturing rates.
Leggett & Platt (NYSE:LEG) gave up its gains from a day earlier, when it missed consensus estimates on both the top and bottom lines and slashed fourth-quarter earnings guidance, blaming lower-than-previously-expected sales in automotive, higher costs and weaker sales in home furniture.
Weyerhaeuser (NYSE:WY), meanwhile, fell 6% after delivering third-quarter sales and profit significantly below analysts’ estimates. It guided fourth-quarter earnings and adjusted EBITDA below third-quarter levels, citing lower average sales realizations in the West and slightly higher fee harvest volumes and comparable average log sales realizations in the South.
The trio of results underscored the dour state of the U.S. housing market, pressured by both surging input costs and mortgage rates, which climbed to 5% this month for the first time since 2011.