The 10-second takeaway
For the quarter ended Dec. 31 (Q4), HNI beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins contracted, and net margins improved.
HNI booked revenue of $500.3 million. The five analysts polled by S&P Capital IQ expected net sales of $490.1 million. Sales were 7.3% higher than the prior-year quarter's $466.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.41. The five earnings estimates compiled by S&P Capital IQ forecast $0.40 per share on the same basis. GAAP EPS of $0.40 for Q4 were 43% higher than the prior-year quarter's $0.28 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 35.6%, 10 basis points worse than the prior-year quarter. Operating margin was 6.2%, 10 basis points worse than the prior-year quarter. Net margin was 3.6%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $424.0 million. On the bottom line, the average EPS estimate is $0.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $1.44.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 34 members out of 46 rating the stock outperform, and 12 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 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 $27.50.
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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. 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.