HNI Misses Where it Counts

HNI (NYSE: HNI  ) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), HNI beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.

Margins contracted across the board.

Revenue details
HNI logged revenue of $527.5 million. The five analysts polled by S&P Capital IQ looked for sales of $519.8 million on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $500.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.40. The five earnings estimates compiled by S&P Capital IQ anticipated $0.43 per share. GAAP EPS of $0.39 for Q4 were 2.5% lower than the prior-year quarter's $0.40 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.2%, 40 basis points worse than the prior-year quarter. Operating margin was 5.9%, 30 basis points worse than the prior-year quarter. Net margin was 3.3%, 30 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $459.3 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $2.07 billion. The average EPS estimate is $1.40.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 36 members out of 48 rating the stock outperform, and 12 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give HNI 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 HNI is hold, with an average price target of $29.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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 has a disclosure policy.


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