HNI Q3 adjusted EPS beats expectations on Steelcase acquisition
HNI•HNI reported third-quarter adjusted EPS of $1.62, beating the $1.40 analyst estimate, while sales of $1.60 billion matched expectations. The company expects fourth-quarter non-GAAP diluted EPS to rise in the mid-20% range year over year.
1. Third-quarter results
HNI reported third-quarter net income of $90 million and EPS of $1.23. Adjusted EPS was $1.62, above the $1.40 analyst estimate, while sales of $1.60 billion matched expectations. HNI said profit improvement was driven by the Steelcase acquisition and related synergies, productivity gains and organic volume growth.
2. Fourth-quarter outlook
HNI expects legacy Workplace Furnishings net sales to grow at a low-single-digit rate year over year in the fourth quarter, while Residential Building Products net sales are expected to be roughly unchanged. The company expects non-GAAP diluted EPS to rise in the mid-20% range year over year.
