HNI Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

After beating estimates last quarter by $0.14, HNI (NYS: HNI) has set the standard for itself. The company will unveil its latest earnings Tuesday, Feb. 7. HNI is a provider of office furniture and health products.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on HNI with four of five analysts rating it hold. Analysts don't like HNI as much as competitor Herman Miller overall. Two out of four analysts rate Herman Miller a buy compared to one of five for HNI. Analysts' rating of HNI has stayed constant from three months prior.
  • Revenue forecasts: On average, analysts predict $491.2 million in revenue this quarter. That would represent a rise of 5.4% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.40 per share. Estimates range from $0.39 to $0.41.

What our community says:
CAPS All-Stars are in strong support of the stock, with 88.2% granting it an "outperform" rating. The majority of the Fools agree with the All-Stars, with 74.5% giving it an "outperform" rating. Fools are keen on HNI, though the message boards have been quiet lately with only 26 posts in the past 30 days. HNI's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

QuarterQ3Q2Q1Q4
Gross Margin35.6%33.9%34.0%35.2%
Operating Margin8.0%2.4%0.2%4.4%
Net Margin4.9%1.1%(0.4%)2.7%
For all our HNI-specific analysis, including earnings and beyond, add HNI to My Watchlist.

At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners