Mohawk Industries Inc (NYSE: MHK) has seen a positive surge in its stock price after hours on Friday. The company’s shares have risen by 4.97% to reach $131.48 per share. The increased demand for its stock is attributed to two major developments. Firstly, Mohawk is slated to release its financial results for the quarter or year, which is expected to give investors insights into the company’s financial performance and future growth prospects. Secondly, the company has recently resolved its ongoing litigation issues, which has instilled confidence among investors and contributed to the stock’s appreciation.
When will MHK release its financials?
The accounting process for Mohawk (MHK) is nearly finished, and the company is preparing its financial statements for the fourth quarter and full year 2022. Based on Mohawk’s projections, adjusted earnings per share are expected to be between $1.27 and $1.31 for the fourth quarter, excluding restructuring costs. MHK will release its quarterly earnings on February 9, 2023, followed by a call for investors on February 10, 2023.
The company has also announced that it has settled a securities class action lawsuit with plaintiffs. In this lawsuit filed in the Northern District of Georgia on January 3, 2020, MHK and some of its executive officers were named as defendants. However, Mohawk has determined that further litigation would be protracted, burdensome and expensive because it considers this Securities Class Action to be without merit and has substantive defenses.
A settlement of $60 million was reached between the parties in exchange for dismissing and releasing claims against the defendants. A preliminary approval of the Securities Class Action settlement is expected from the court soon. A final settlement is subject to the standard and customary formalities, public notices, and court approvals in this case.
A tax dispute was also resolved by MHK:
Mohawk (MHK) has successfully settled a dispute with the Belgian Tax Authority (“BTA”) regarding the tax treatment of royalties. Tax assessments were issued by the BTA in April 2022 for the calendar years ending December 2013 through 2018. These assessments include penalties, but do not include interest. On November 23, 2022, Mohawk settled its tax dispute with the BTA for a one-time payment of €3 million, even though it believes its tax position was correct.