HNI Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of HNI Corp. (NYSE: HNI  ) leapt more than 10% after the company reported fourth-quarter revenue and profit that beat expectations.

So what: Businesses are apparently buying office furniture again. HNI's revenue improved 14.9% to $466.1 million. Adjusted profit rose 44% to $0.39 a share. Analysts were expecting $450.2 million and $0.25, respectively.

Now what: The rally ended shortly after it began, with the stock trading up just 2% as of this writing. Part of the problem might be HNI's non-GAAP profit. It's not clear whether the $0.25 analysts were expecting included transition charges and restructuring costs. By that measure -- the GAAP number -- HNI earned $0.27 a share. Still a beat, but not as big a beat as investors might have been hoping for.

Interested in more info on HNI? Add it to your watchlist. You can also try any of our Foolish newsletter services free for 30 days.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1438651, ~/Articles/ArticleHandler.aspx, 9/23/2014 10:31:19 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement