Alternatively, several positions weighed on performance during the period. Leading manufacturer and distributor of floorcovering products, Mohawk Industries Inc. (MHK, Financial) traded lower in the period. The top-line earnings beat was offset by weaker margins largely due to input cost inflation. Notably, demand remains firm supporting the implementation of further price increases. Also in the quarter, MHK authorized an additional return of capital to shareholders via buybacks. We remain encouraged by strong residential new construction and remodeling spend as well as the recovery in commercial markets. We believe the company will continue to benefit from global and capacity expansion, as well as end-market growth. At current levels, MHK is trading at a 57% discount to our estimate of private market value.
From John Rogers (Trades, Portfolio)' Ariel Fund first-quarter 2022 commentary.
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