The 10-second takeaway
For the quarter ended June 29 (Q2), HNI met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins increased, net margins expanded.
HNI reported revenue of $510.7 million. The four analysts polled by S&P Capital IQ expected to see sales of $509.8 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $480.4 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 $0.28. The four earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. Non-GAAP EPS of $0.28 for Q2 were 65% higher than the prior-year quarter's $0.17 per share. GAAP EPS of $0.25 for Q2 were 67% higher than the prior-year quarter's $0.15 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 34.2%, 20 basis points worse than the prior-year quarter. Operating margin was 3.9%, 90 basis points better than the prior-year quarter. Net margin was 2.2%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $576.2 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $2.08 billion. The average EPS estimate is $1.41.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 36 members out of 49 rating the stock outperform, and 13 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 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 $33.50.
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