Herman Miller Profit In Line, Stock Up On Robust Guidance - Update

(RTTNews) - Office furniture maker Herman Miller Inc (MLHR), Wednesday reported a higher third-quarter profit, as demand across all segments drove sales up about 8 percent and margins were strong. Earnings for the quarter were in line with Wall Street estimates but sales fell short of expectations.

The company provided a strong guidance for the fourth quarter, sending Herman Miller shares up 5 percent in after-hours trade on the Nasdaq.

Herman Miller said growth in the recent quarter was seen even in areas subject to headwinds, namely the U.S. federal government and key markets within EMEA and Asia.

The company added that while the positive momentum cannot be seen as a complete return to strong growth, it still augurs well.

Zeeland, Michigan-based Herman Miller reported third-quarter net earnings of $19.4 million or $0.33 per share, compared with $16.5 million or $0.28 per share last year.

Excluding items, adjusted earnings for the quarter were $0.34 per share, compared with $0.32 per share a year ago. On average, four analysts polled by Thomson Reuters expected earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the third quarter climbed 7.7 percent to $455.9 million from $423.5 million in the prior year. Analysts expected sales of $457.6 million for the quarter.

Sales at its key North American segment were up 3 percent from last year. International sales, including EMEA, Latin America, and Asia-Pacific, was up 7.8 percent. Specialty and Consumer segment sales jumped 35.5 percent.

Results were also buttressed by gross margin that climbed 160 basis points to 35.7 percent for the quarter.

During the quarter, the company also announced some restructuring actions to rejuvenate its North American sales and distribution channel.

New orders in the quarter were up 21.4 percent year-over-year to $464 million.

For the fourth quarter, Herman Miller has forecast earnings of $0.43 to $0.47 per share and sales of $485 million to $505 million. Analysts currently expect earnings of $0.43 per share on sales of $487.5 million for the quarter.

Herman Miller stock ended Wednesday at $28.71, up $0.03 or 0.10%, on a volume of 138k shares. In after hours, the stock gained $1.69 or 5.89% at $30.40.