February 9, 2011
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.
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