The 10-second takeaway
For the quarter ended June 1 (Q4), Herman Miller beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins contracted, net margins increased.
Herman Miller logged revenue of $460.0 million. The four analysts polled by S&P Capital IQ foresaw a top line of $441.6 million on the same basis. GAAP reported sales were 9.4% higher than the prior-year quarter's $420.6 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 $0.43. The four earnings estimates compiled by S&P Capital IQ anticipated $0.36 per share. Non-GAAP EPS of $0.43 for Q4 were 54% higher than the prior-year quarter's $0.28 per share. GAAP EPS of $0.40 for Q4 were 90% higher than the prior-year quarter's $0.21 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 35.3%, 40 basis points worse than the prior-year quarter. Operating margin was 7.8%, 60 basis points worse than the prior-year quarter. Net margin was 5.1%, 220 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $479.2 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $1.89 billion. The average EPS estimate is $1.76.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 118 members out of 130 rating the stock outperform, and 12 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Herman Miller 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 Herman Miller is outperform, with an average price target of $32.00.
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