The 10-second takeaway
For the quarter ended Dec. 1 (Q2), Herman Miller missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Herman Miller recorded revenue of $441.8 million. The four analysts polled by S&P Capital IQ foresaw sales of $454.0 million on the same basis. GAAP reported sales were 0.9% lower than the prior-year quarter's $445.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.35. The four earnings estimates compiled by S&P Capital IQ averaged $0.39 per share. GAAP EPS of $0.14 for Q2 were 66% lower than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.6%, 50 basis points worse than the prior-year quarter. Operating margin was 4.1%, 500 basis points worse than the prior-year quarter. Net margin was 1.9%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $440.1 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.79 billion. The average EPS estimate is $1.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 119 members out of 131 rating the stock outperform, and 12 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Herman Miller a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Herman Miller is outperform, with an average price target of $29.00.
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