MUSCATINE, Iowa – HNI Corporation (NYSE:) reported third-quarter earnings that beat analyst estimates, but revenue fell short of expectations, sending shares down 1% in after-hours trading.
The office furniture and hearth products manufacturer posted adjusted earnings per share of $1.03, surpassing the consensus estimate of $0.98. However, revenue came in at $672.2 million, missing analyst projections of $712.75 million and declining 5.5% year-over-year.
HNI’s Workplace Furnishings segment saw net sales decrease 5.9% to $505.1 million, while Residential Building Products revenue fell 4.4% to $167.1 million compared to the same quarter last year.
Despite the revenue miss, the company highlighted strong profit growth, with adjusted operating income rising 10.8% to $72.3 million. Workplace Furnishings achieved its highest third-quarter operating margin in 20 years at 11.9% on a non-GAAP basis.
“Our strategies continue to drive strong profit growth. Our teams delivered outstanding results through the first three quarters of 2024—with year-to-date EPS growing 33 percent,” said Jeff Lorenger, Chairman, President, and CEO of HNI Corporation.
Looking ahead, HNI expects fourth-quarter revenue to decline in both segments compared to the prior year due to economic uncertainty and delayed customer projects. However, the company remains optimistic about 2025, citing encouraging order rates and a growing sales funnel in Workplace Furnishings.
HNI maintained its outlook for full-year 2024 non-GAAP EPS growth of 10% or more, which would mark the third consecutive year of double-digit earnings growth.
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