HNI Earnings: Here’s Why Investors are Selling Shares Now

HNI Corp. (NYSE:HNI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.74%.

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HNI Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 200% to $0.03 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Decreased 0.65% to $442.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: HNI Corp. reported adjusted EPS income of $0.03 per share. By that measure, the company beat the mean analyst estimate of $-0.02. It beat the average revenue estimate of $438.33 million.

Quoting Management: “We are pleased with our performance and profit growth over prior year. Strong operational execution, good cost control, and investment returns drove first quarter profit improvement while we continued to invest for long-term growth. Sales increases in our hearth and supplies-driven businesses offset anticipated softness in our other office furniture businesses. As expected, office furniture sales declined due to project delays related to the economic uncertainty in the fourth quarter of 2012 and continued reductions in federal government spending. Continued growth in the new construction channel led the strong profit increase in our hearth business,” said Stan Askren, HNI Corporation Chairman, President and Chief Executive Officer.

Key Stats (on next page)…

Revenue decreased 16.16% from $527.54 million in the previous quarter. EPS decreased 92.5% from $0.40 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.19 to a profit $0.22. For the current year, the average estimate has moved down from a profit of $1.4 to a profit of $1.35 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)