What happened

Shares of furniture company Herman Miller, Inc. (NASDAQ:MLHR) jumped as much as 14.3% in early trading Thursday after reporting fiscal fourth-quarter results. At 11:05 a.m. EDT shares were holding at a 9.2% gain for the day.

So what

On the surface, results weren't as strong as the stock's move might indicate. Revenue was down 0.9% to $577.2 million and new orders dropped 6.3% from a year ago to $568.1 million. Management said a price increase that went into effect during the quarter pushed sales into the fiscal third quarter.

Modern office furniture in a high rise office building.

Image source: Getty Images.

On the bottom line, net income fell 17.9% to $33.4 million and earnings per share dropped the same amount to $0.55. Adjusted for one-time items, management said earnings jumped 14.3% to $0.64, which beat the estimate of $0.55 from Wall Street.

Now what

Expectations for Herman Miller had come down early in 2017, partly because of uncertainty surrounding price increases. But a quarter that topped expectations helped and guidance of organic growth of 5% in the first fiscal quarter of 2018 gave investors reason to push the stock higher. With shares trading at just 15.5 times trailing earnings, this is a stock that has a lot of upside potential if the company can return to steady growth in 2018.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.