HNI Corp. (NYSE: HNI) reported Q4 EPS of $0.63, $0.15 better than the analyst estimate of $0.48. Revenue for the quarter came in at $568.9 million versus the consensus estimate of $560.67 million.

Fiscal Year 2023 Outlook

• Macro outlook: Broader macroeconomic concerns continue to negatively impact Workplace Furnishings demand. In Residential Building Products, while there are signs of moderating pressures from elevated mortgage rates and decreased home affordability, the Corporation expects these factors to lower volume levels on a year-over-year basis.
• Return to historical seasonality: The Corporation expects earnings seasonality to be more in-line with pre-pandemic trends. This follows three years of abnormal seasonal trends with 2022 seasonality being particularly impacted by backlog dynamics and deteriorating demand. The difference in seasonality between 2023 and 2022 will distort quarterly year-over-year comparisons of sales and profit in 2023. The Corporation expects to generate more than 85 percent of its annual profit in the second half of 2023, compared to 60 percent in the second half of 2022.
• First quarter commentary: The Corporation expects non-GAAP operating income to be approximately breakeven in the first quarter of 2023. This outlook reflects the combination of the seasonally weakest quarter, difficult year-ago comparisons, and the impact of a softening demand environment tied to slowing economic growth.
• Balance Sheet: The Corporation expects to maintain a strong balance sheet throughout 2023. Low leverage and improving free cash flow generation are expected to provide ample capacity for investment, dividend payments, M&A, and share buybacks.

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