Herman Miller shares are trading higher after-hours: here’s why

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Sep 29, 2021
  • Herman Miller reports mixed results for its fiscal first quarter.
  • The furniture company's guidance for Q2 beats estimates.
  • The stock jumped more than 5.0% in after-hours trading.

Herman Miller Inc (NASDAQ: MLHR) reported mixed results for its fiscal first quarter on Wednesday, after the bell. Shares of the company, however, jumped more than 5.0% in extended trading as investors focused on Q2 guidance that beat forecasts.

Q1 financial performance

Herman Miller said its net earnings in Q1 came in at $61.5 million versus the year-ago figure of $73 million. On a per-share basis, it earned 49 cents a share (adjusted), as per the earnings press release.

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The furniture company generated $789.7 million in sales that represents an annualised growth of 26%. According to Refinitiv, experts had forecast 50 cents of adjusted EPS on $648.2 million in net sales.

Future guidance and other notable figures

For the current quarter (Q2), Herman Miller forecasts up to 61 cents of adjusted per-share earnings on $1.025 billion to $1.065 billion in net sales. In comparison, analysts are calling for 57 cents of adjusted EPS on $748.3 million in revenue.

Other notable figures in the Nasdaq-listed firm’s earnings report include gross margin that declined to 35.1% from last year’s 39.9%. Herman Miller valued its orders and backlogs at $916.5 million and $835.9 million, respectively.

Herman Miller acquired Knoll Inc

Herman Miller completed the acquisition of Knoll Inc in the recent quarter. Commenting on that, the company said in its press release:

We had a strong start to fiscal 2022 on robust demand across our business while also completing the acquisition of Knoll. Going forward, we’ll operate under the name MillerKnoll. The integration is progressing smoothly, and we’re confident in delivering on our previously outlined cost synergy targets.

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