HNI Corp. (NYSE: HNI) reported Q3 EPS of $0.82, $0.02 better than the analyst estimate of $0.80. Revenue for the quarter came in at $599.5 million versus the consensus estimate of $585.07 million.

Outlook\"We are expecting a significant decline in our fourth quarter profit as we work through two major challenges. First, we continue to confront highly dynamic conditions in our supplies-driven office furniture business, resulting in increased investment and lower near-term sales. Second, our operational transformations have been more difficult than anticipated, resulting in higher costs.

"We are confident in our ability to meet these challenges. Our supplies-driven business has market access, brands, and scale unmatched by its competition, even in this new environment. We are establishing direct service capabilities which will provide economic advantages to our dealer partners with improved responsiveness and delivery. We are confident we will stabilize our transformations and return to driving cost improvements and continue to grow the top line," said Mr. Askren.

The Corporation estimates full year 2017 non-GAAP earnings per share to be in the range of $1.88 to $1.95, which excludes restructuring and transition costs and other nonrecurring gains. This compares to prior guidance of non-GAAP earnings per share of $2.35 to $2.55. Lower fourth quarter volume in the supplies-driven business, higher costs related to operational transformations, and unfavorable business and product mix are primarily driving the reduced outlook.

For the fourth quarter 2017, the Corporation expects sales to be flat to down 3 percent. Fourth quarter organic sales, which exclude the impacts of acquisitions and divestitures, are expected to be flat to up 3 percent. Fourth quarter non-GAAP earnings per share are anticipated to be in the range of $0.38 to $0.45, which excludes restructuring and transition costs.

To focus on taking care of customers and strengthening its operational network, the Corporation proactively elected to move the next Business Systems Transformation implementation phase to February 2018, a historically slower demand period.

"We are confronting our challenges and responding to these dynamic conditions. We remain optimistic about our opportunities to drive profit improvement," said Mr. Askren.

The Corporation estimates full year non-GAAP earnings per share for 2018, which excludes restructuring and transition costs, to be in the range of $2.15 to $2.65 with consolidated organic net sales up 2 to 5 percent

GUIDANCE:

HNI Corp. sees FY2017 EPS of $1.88-$1.95, versus the consensus of $2.45.

HNI Corp. sees FY2018 EPS of $2.15-$2.65, versus the consensus of $2.98.

For earnings history and earnings-related data on HNI Corp. (HNI) click here.