HNI (NYSE:HNI) Announces Earnings Results, Beats Expectations By $0.23 EPS

Key Points

• HNI reported quarterly EPS of $1.62, beating analyst expectations of $1.39 by $0.23. Revenue reached $1.59 billion, slightly below the $1.60 billion consensus estimate, while year-over-year revenue surged 132.9%.
• HNI shares fell 1.1% to $49.12 following the results, despite trading well above their 52-week low of $28.93. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $65.
• The company declared a quarterly dividend of $0.35 per share, equivalent to a $1.40 annualized dividend and a 2.9% yield. CEO Jeffrey Lorenger also sold 39,576 shares under a pre-arranged Rule 10b5-1 trading plan.

HNI (NYSE:HNI - Get Free Report) released its earnings results on Tuesday. The business services provider reported $1.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.39 by $0.23, reports. The company had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.60 billion. HNI had a return on equity of 13.66% and a net margin of 0.10%. HNI's quarterly revenue was up 132.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.88 earnings per share.

HNI Trading Down 1.1%

HNI stock traded down $0.55 during trading hours on Tuesday, reaching $49.12. The stock had a trading volume of 176,390 shares, compared to its average volume of 656,763. The company has a fifty day simple moving average of $47.38 and a 200-day simple moving average of $41.99. HNI has a 52 week low of $28.93 and a 52 week high of $52.79. The stock has a market cap of $3.55 billion, a PE ratio of 548.06, a PEG ratio of 0.75 and a beta of 0.93. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.36 and a quick ratio of 0.88.

HNI Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 11th. Shareholders of record on Friday, August 28th were given a dividend of $0.35 per share. The ex-dividend date of this dividend was Friday, August 28th. This represents a $1.40 annualized dividend and a yield of 2.9%. HNI's dividend payout ratio is presently 1,555.56%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Wall Street Zen upgraded HNI from a "hold" rating to a "buy" rating in a research note on Saturday, September 12th. Wells Fargo & Company set a $65.00 target price on shares of HNI in a research report on Wednesday, July 15th. Weiss Ratings reiterated a "hold (c-)" rating on shares of HNI in a research note on Thursday, October 22nd. Finally, Benchmark reiterated a "buy" rating on shares of HNI in a research note on Wednesday, July 15th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $65.00.

Insider Activity at HNI

In other news, CEO Jeffrey Lorenger sold 39,576 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $50.09, for a total transaction of $1,982,361.84. Following the completion of the sale, the chief executive officer directly owned 148,490 shares in the company, valued at approximately $7,437,864.10. This represents a 21.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 49,288 shares of company stock worth $2,468,419 over the last ninety days. Corporate insiders own 2.15% of the company's stock.

HNI Company Profile

HNI Corporation NYSE: HNI, headquartered in Muscatine, Iowa, is a workplace and residential building products company. Its businesses serve organizations, businesses, education and government customers, as well as residential consumers through office furnishings and hearth products.

HNI's workplace furnishings portfolio includes desks, tables, seating, storage, collaborative products and related workplace solutions. Its brands include HON, Allsteel, HBF and Gunlocke, among others. The company sells products through dealers, retailers, e-commerce channels and other distribution partners, primarily serving customers in North America.

Through its hearth products business, HNI manufactures fireplaces, inserts, stoves and related products fueled by gas, wood and pellets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.