The 10-second takeaway
For the quarter ended Dec. 3 (Q2), Herman Miller met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share improved significantly.
Margins increased across the board.
Herman Miller notched revenue of $446 million. The five analysts polled by S&P Capital IQ predicted a top line of $449 million. Sales were 8.1% higher than the prior-year quarter's $412 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.41. The five earnings estimates compiled by S&P Capital IQ forecast $0.40 per share. GAAP EPS of $0.41 for Q2 were 57% higher than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 34.1%, 120 basis points better than the prior-year quarter. Operating margin was 9.1%, 90 basis points better than the prior-year quarter. Net margin was 5.3%, 100 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $441 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $1.8 billion. The average EPS estimate is $1.53.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 119 members out of 130 rating the stock outperform, and 11 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Herman Miller a green thumbs-up, and one gives 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 $31.
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