Wachovia raises rating on Mohawk

By Staff -- Home Textiles Today, 7/18/2003 12:00:00 AM

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