Mohawk inches upward in new analyst ratings

Wachovia raises investment rating to 'outperform'

Staff -- Home Textiles Today, 7/21/2003 12:00:00 AM

CHARLOTTE, NC —

Cheered as Mohawk Industries' second-quarter performance beat Wall Street expectations, Wachovia Securities raised its investment rating for the carpet and home fashions producer to 'outperform' from a prior grade 'market perform.'

With earnings per share of $1.12, unchanged from the year-ago period, the nation's second-largest producer of commercial and residential carpeting easily beat a consensus Wall Street earnings forecast of $1.05 per share.

"Mohawk's good results depict the diversity of its business within the floor covering industry, its pricing power and its ability to manage costs in a clearly difficult environment," Wachovia said in a research note.

The day after the results were announced, on July 17, Mohawk stock jumped up by 8.3 percent, or $4.84 a share, to $62.98, a 12-month high for the company's shares.