The 10-second takeaway
For the quarter ended March 31 (Q1), HNI met expectations on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased to zero.
Gross margin dropped, while both operating margin and net margin improved.
HNI logged revenue of $445.2 million. The five analysts polled by S&P Capital IQ looked for sales of $442.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $396.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.01. The five earnings estimates compiled by S&P Capital IQ forecast $0 per share on the same basis. GAAP EPS dropped to zero from the prior-year quarter's -$0.04.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33%, 100 basis points worse than the prior-year quarter. Operating margin was 0.7%, 10 basis points better than the prior-year quarter. Net margin was 0%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $473.6 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $1.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 36 members rating the stock outperform and 12 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 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.