HNI Cuts Q3, 2016 Outlook

(RTTNews) - HNI Corp. (HNI) said that it now expects revenue and earnings for the third quarter and fiscal year 2016 to be below its previous outlook.

HNI closed Monday's regular trading at $54.21, up $1.22 or 2.30%. But, in the after-hours, the stock dropped $4.21 or 7.77%.

Demand in the office furniture and hearth segments is expected to be lower than previously forecasted. Office furniture business sales will be lower than expected due to overall softer than anticipated demand, subdued small business confidence and lower than anticipated project activity. Hearth sales will be lower due to slower than expected housing starts, acquisition integration and acquired dealer transitions timing, and continued decline in pellet appliances.

HNI now estimates third quarter sales to be down 4 to 7 percent compared to previous guidance of flat to up 3 percent. As a result, the Corporation expects third quarter non-GAAP earnings per share to be in the range of $0.74 to $0.79 compared to its previous guidance of $0.90 to $0.95. Analysts polled by Thomson Reuters expect the company to report earnings of $0.95 per share for the third-quarter. Analysts' estimates typically exclude special items.

The Corporation now estimates full year non-GAAP earnings per share to be in the range of $2.50 to $2.70 on a sales decrease of 3 to 6 percent versus the prior year. This compared to prior guidance of non-GAAP earnings per share of $2.80 to $2.95 on a sales decrease of 1 to 3 percent. Analysts expect annual earnings of $2.87 per share.

HNI expects to issue a press release updating third quarter 2016 financial results after market close on Wednesday, October 19, 2016.