The 10-second takeaway
For the quarter ended March 3 (Q3), Herman Miller missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP EPS shrank.
Gross margin expanded, operating margin contracted, and net margin dropped.
Herman Miller recorded revenue of $399.8 million. The five analysts polled by S&P Capital IQ predicted a top line of $412.5 million on the same basis. GAAP reported sales were 3.6% lower than the prior-year quarter's $414.8 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 $0.26. The five earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.26 for Q3 were 10% lower than the prior-year quarter's $0.29 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%, 150 basis points better than the prior-year quarter. Operating margin was 6.3%, 120 basis points worse than the prior-year quarter. Net margin was 3.7%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $433.9 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.75 billion. The average EPS estimate is $1.42.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 118 members rating the stock outperform and 11 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Herman Miller a green thumbs-up, and one 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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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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.