🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

HNI shares dip as revenue falls short of expectations

EditorRachael Rajan
Published 10/29/2024, 07:41 AM
© Reuters.
HNI
-

MUSCATINE, Iowa - HNI Corporation (NYSE:HNI) reported third-quarter earnings that beat analyst estimates, but revenue fell short of expectations, sending shares down 1% in after-hours trading.

The office furniture and hearth products manufacturer posted adjusted earnings per share of $1.03, surpassing the consensus estimate of $0.98. However, revenue came in at $672.2 million, missing analyst projections of $712.75 million and declining 5.5% year-over-year.

HNI's Workplace Furnishings segment saw net sales decrease 5.9% to $505.1 million, while Residential Building Products revenue fell 4.4% to $167.1 million compared to the same quarter last year.

Despite the revenue miss, the company highlighted strong profit growth, with adjusted operating income rising 10.8% to $72.3 million. Workplace Furnishings achieved its highest third-quarter operating margin in 20 years at 11.9% on a non-GAAP basis.

"Our strategies continue to drive strong profit growth. Our teams delivered outstanding results through the first three quarters of 2024—with year-to-date EPS growing 33 percent," said Jeff Lorenger, Chairman, President, and CEO of HNI Corporation.

Looking ahead, HNI expects fourth-quarter revenue to decline in both segments compared to the prior year due to economic uncertainty and delayed customer projects. However, the company remains optimistic about 2025, citing encouraging order rates and a growing sales funnel in Workplace Furnishings.

HNI maintained its outlook for full-year 2024 non-GAAP EPS growth of 10% or more, which would mark the third consecutive year of double-digit earnings growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.