HNI beats by $0.02, beats on revs; guides Q4 revs below consensus; lowers FY17 EPS below consensus; guides FY18 EPS below consensus (42.29 -0.57)
- Reports Q3 (Sep) earnings of $0.82 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.80; revenues rose 2.5% year/year to $599.5 mln vs the $585.07 mln Capital IQ Consensus.
- Co issues guidance for Q4, sees EPS of $0.38-0.45, may not be comparable to $0.96 Capital IQ Consensus Estimate; sees Q4 revs of flat to +3% or ~$581.3-498.74 mln vs. $601.17 mln Capital IQ Consensus Estimate.
- Co issues downside guidance for FY17, sees EPS of $1.88-1.95 (prior: $2.35-2.55), excluding non-recurring items, vs. $2.45 Capital IQ Consensus Estimate.
- Co issues downside guidance for FY18, sees EPS of $2.15-2.65 vs. $2.98 Capital IQ Consensus Estimate.
- Consolidated organic net sales up 2 to 5 percent.
- "We are expecting a significant decline in our fourth quarter profit as we work through two major challenges. First, we continue to confront highly dynamic conditions in our supplies-driven office furniture business, resulting in increased investment and lower near-term sales. Second, our operational transformations have been more difficult than anticipated, resulting in higher costs. We are confident in our ability to meet these challenges. Our supplies-driven business has market access, brands, and scale unmatched by its competition, even in this new environment. We are establishing direct service capabilities which will provide economic advantages to our dealer partners with improved responsiveness and delivery. We are confident we will stabilize our transformations and return to driving cost improvements and continue to grow the top line," said Mr. Askre