HNI Q2 sales and adjusted EPS beat analyst expectations
HNI•Drivers and market view
- Steelcase acquisition - The company said the Steelcase acquisition was the main driver of year-over-year sales and profit growth.
- Tariff impacts and productivity - HNI said net tariff impacts and operational productivity improvements contributed to profit performance.
- Order improvement - HNI said Workplace Furnishings second-quarter orders and backlog each grew 5% year over year, indicating improving demand.
The current average analyst rating on the shares is "buy," with 2 "strong buy" or "buy" ratings, no "hold" ratings, and no "sell" or "strong sell" ratings. The average consensus recommendation for the business support supplies peer group is "buy."
Wall Street's median 12-month price target for HNI Corp is $69.00, about 61.3% above its July 29 closing price of $42.78. The stock recently traded at 10 times the next 12-month earnings versus a P/E of 8 three months ago.
Quarterly results beat expectations
HNI said second-quarter sales rose and beat analyst expectations, while adjusted earnings per share also topped estimates, driven by the Steelcase acquisition and productivity gains.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | Beat | $1.50 bln | $1.48 bln (4 Analysts) |
| Q2 Adjusted EPS | Beat | $1.27 | $1.04 (4 Analysts) |
| Q2 EPS | $0.70 | ||
| Q2 Net Income | $51.10 mln |
