Herman Miller -3.8% as guidance disappoints

|About: Herman Miller, Inc. (MLHR)|By:, SA News Editor

Herman Miller (NASDAQ:MLHR) is one of the top afterrmarket decliners, falling 3.8% after fiscal Q3 earnings that beat on top and bottom lines but contained downside guidance for the current quarter.

Broad-based revenue gains paced its Q3 beat; new orders were up 3.7% Y/Y.

"We were particularly encouraged that the acceleration in sales for the Consumer business resulted in meaningful improvement in operating margins for the segment as we execute on this important strategic priority," says CEO Brian Walker.

Gross margin dipped to 35.6% from 37.2%

EBITDA rose 17% to $61.6M, beating an expected $60.2M.

Net sales by segment: North America, $316.4M (up 7.4%); ELA, $102.6M (up 16.6%); Specialty, $72.6M (up 4.8%); Consumer, $86.8M (up 18.7%).

Organic orders by segment: North America, $294.7M (down 7.4%); ELA, $113.9M (up 33.2%); Specialty, $71.2M (up 7.4%); Consumer, $83.4M (up 14.1%).

For Q4, it's guiding to net sales of $590M-$610M -- sales growth of 4% Y/Y on an organic basis -- below consensus for $612.8M. It's forecasting adjusted EPS of $0.56-$0.60, well off expectations for $0.73.

Cash and equivalents were $193M, up $96.8M from the end of fiscal 2017. Cash flow from operations were $29.2M vs. a prior-year $27.8M.

Press release