Herman Miller Inc. (NASDAQ: MLHR) has confirmed its earnings release date, which will be on September 29, 2021.
What to look for
In fiscal 2021 the company performed exceptionally, especially in the fourth quarter. The company continues to benefit from its omnichannel direct to consumer strategy, which is expected to be a growth driver in Q1 2022 through digital channels. Equally, brick and motor traffic has been strong this year, and the company will likely carry that momentum into the current quarter boosting sales.
Earning: Stockearning’s Estimated EPS is likely to fall around the previous quarter’s EPS of $0.56. However, historical EPS performance in the past 12 quarters indicates that the company has beat estimates seven times (58%) and never missed estimates.
Revenue: In Q4 2021, the company reported net sales of $621.5 million, a 30.6% YoY increase thanks to a 28.8% increase in orders of $689.4 million. The company reported diluted earnings per share of $0.12 relative to a loss per share of $2.95 a year ago. For FY2021, the company posted net sales of $2.47 billion with diluted earnings per share of $2.92. The company expects Q1 2022 sales to range from $640-$670 million, with a mid-point range implying a revenue growth of 4.5%. Also, Herman Miller expects adjusted earnings per share of between $0.52 and $0.58.
Stock movement: since the last earnings release, Herman Miller shares have lost 12.7%. However, following the earnings release, shares have been up 25 times over the past 45 quarters. Therefore, the historical price reaction suggests a 57% chance of share prices moving up after the company releases its fiscal Q1 2022 earnings. According to Stockearning’s algorithm, the predicted first-day move following earnings release is 6%, while the predicated share price movement after seven days is 7%.
What analysts are saying
Benchmark analyst Reuben Garner has raised the firm’s target price on Herman Miller from $50 to $60 but maintained a “Buy” rating on the stock on a strong close to fiscal 2021. Although margins were disappointing in the outlook for the new quarter driving EPS guidance missing estimates, the analyst sees the price/cost challenges as transitory and expect and believes the posit earnings dip will offer investors a shot to capitalize on a pullback. Additionally, garner said there is proof of recovery of North American Office with consumer business looking more sustainable, and this he has moved his EPS estates up for fiscal 2022 and 2023.
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