Earnings Preview: Herman Miller

| About: Herman Miller, (MLHR)

Herman Miller, Inc. (NASDAQ:MLHR) engages in the research, design, manufacture, and distribution of interior furniture systems, products, and related services worldwide. It also provides modular systems under the Action Office, Canvas Office Landscape, Ethospace, Resolve, My Studio Environments, and Vivo Interiors brand names; seating products under the Embody, Aeron, Mirra, Setu, Celle, Equa, and Ergon brand names; and storage products under the Meridian and Tu brand names.

It is scheduled to report its Q4 2012 results on June 28, 2012, before the market opens.

Technical Overview

Key Metrics

  • Market Cap: 987.53M
  • 52-week trading range: 15.63 - 28.94
  • Trailing P/E: 12.29
  • Forward P/E: 10.65
  • Price/Sales: 0.56
  • Price/Book: 3.66
  • PEG Ratio: 6.16
  • Total Debt: 250.00M
  • Annual dividend yield: 0.50%
  • Return on Equity: 38.99%
  • Return on Assets: 10.44%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.26 EPS, in-line with analyst estimates.

The consensus EPS is $0.30 based on 4 analysts' estimates, same as a year ago. Revenue estimates are $426.93M, down from $441.50M a year ago. The median target price by analysts for the stock is $29.00.

Average recommendation: Overweight

Source: Marketwatch

Latest Developments

  • On March 22, 2012, Herman Miller, Inc. announced that net sales in the fourth quarter of 2012 to be in the range between $415 million and $435 million. Earnings in the quarter are expected to be between $0.28 and $0.32 per share on a diluted basis (NYSEARCA:EPS).


Herman Miller Inc. operates in Business Equipment industry. The company could be compared to HNI Corp. (NYSE:HNI), Knoll Inc. (NYSE:KNL), La-Z-Boy Inc. (NYSE:LZB), and Steelcase Inc. (NYSE:SCS). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

MLHR Chart

MLHR data by YCharts

Competitors' Latest Development

  • On June 20, 2012, La-Z-Boy Inc. announced that it believes there will be less volatility in the EPS line for fiscal 2013 as there is no longer consolidating VIEs and therefore reversing out their results in the non-controlling interest line.
  • On June 20, 2012, Steelcase Inc. announced that its Board of Directors declared a cash dividend $0.09 per share, to be paid on or before July 13, 2012 to shareholders of record as of July 2, 2012.
  • On June 20, 2012, Steelcase Inc. announced that for the second quarter of 2013, it expects revenue to be in the range of $715-$740 million. This estimate includes an assumption of approximately $22 million from unfavorable currency translation effects compared to the prior year, as well as the negative impact of a small divestiture and expects to report earnings between $0.16 and $0.20 per share.
  • On April 19, 2012, HNI Corp announced that for the second quarter of 2012, it expects sales growth between 8%-11% over second quarter of 2011 and Non-GAAP earnings per diluted share to be in the range of $0.13-$0.18, which excludes restructuring charges and transition costs.
  • On March 22, 2012, Steelcase Inc. announced that the Board of Directors have declared a cash dividend of $0.09 per share, which is an increase of $0.03 per share or 50% compared to the dividend for the prior quarter, to be paid on or before April 11, 2012 to shareholders of record as of April 2, 2012.
  • On March 14, 2012, La-Z-Boy Inc. and Kuka Home announced a strategic partnership to develop the La-Z-Boy brand in mainland China. The partnership will focus on developing, manufacturing, distributing and retailing La-Z-Boy products, leveraging both companies' strengths and meeting the needs of Chinese consumers.
  • On February 22, 2012, La-Z-Boy Inc. announced that it expects fourth quarter 2012 to be strongest quarter for sales.
  • On January 18, 2012, Dow Jones reported that Steelcase Inc. has agreed to a voluntary recall of about 11,000 'Amia' desk chairs due to a fall hazard, the U.S. Consumer Product Safety Commission said.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Business Equipment, Earnings
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