HNI Corp. (HNI) Cuts Q3, FY16 Guidance
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HNI Corporation (NYSE: HNI) announced that revenue and earnings for the third quarter and fiscal year 2016 are expected to be below the Corporation's previous outlook. Demand in the office furniture and hearth segments is expected to be lower than previously forecasted. Office furniture business sales will be lower than expected due to overall softer than anticipated demand, subdued small business confidence and lower than anticipated project activity. Hearth sales will be lower due to slower than expected housing starts, acquisition integration and acquired dealer transitions timing, and continued decline in pellet appliances. HNI now estimates third quarter sales to be down 4 to 7 percent compared to previous guidance of flat to up 3 percent. As a result, the Corporation expects third quarter non-GAAP earnings per diluted share to be in the range of $0.74 to $0.79 compared to its previous guidance of $0.90 to $0.95.
*** The Street sees Q3 revenue of $631.5 million and EPS of $0.95.
"Sales for the quarter did not develop as expected. Economic uncertainty is weighing on our markets making them more dynamic and difficult to predict than recent periods. Our operational performance continues to deliver strong results in a lower sales environment. Our businesses continue to compete well and we remain confident in our strategies as we respond to the changing environment. We maintain a positive long-term outlook," said Stan Askren, HNI Corporation Chairman, President, and Chief Executive Officer.
The Corporation now estimates full year non-GAAP earnings per diluted share to be in the range of $2.50 to $2.70 on a sales decrease of 3 to 6 percent versus the prior year. This compares to prior guidance of non-GAAP earnings per diluted share of $2.80 to $2.95 on a sales decrease of 1 to 3 percent.
*** The Street sees FY16 revenue of $2.28 billion with EPS of $2.87.
HNI expects to issue a press release updating third quarter 2016 financial results after market close on Wednesday, October 19, 2016 and hold a conference call on Thursday, October 20, 2016 to discuss third quarter financial results and fourth quarter 2016 outlook.
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