Fool Checkup: Herman Miller Earnings

Herman Miller (NAS: MLHR) reported earnings on March 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 3 (Q3), Herman Miller missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP EPS shrank.

Gross margin expanded, operating margin contracted, and net margin dropped.

Revenue details
Herman Miller recorded revenue of $399.8 million. The five analysts polled by S&P Capital IQ predicted a top line of $412.5 million on the same basis. GAAP reported sales were 3.6% lower than the prior-year quarter's $414.8 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.26. The five earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.26 for Q3 were 10% lower than the prior-year quarter's $0.29 per share.


Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.6%, 150 basis points better than the prior-year quarter. Operating margin was 6.3%, 120 basis points worse than the prior-year quarter. Net margin was 3.7%, 110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $433.9 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $1.75 billion. The average EPS estimate is $1.42.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 118 members rating the stock outperform and 11 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Herman Miller a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Herman Miller is outperform, with an average price target of $29.00.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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