TSC Ratings' Updates: Herman Miller

The gross profit margin for TXT is currently lower than what is desirable, coming in at 27.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.60% trails that of the industry average.

TXT had been rated a buy since September 16, 2008.

American Tower(AMT Quote) has been downgraded from buy to hold. American Tower Corporation, through its subsidiaries, engages in the ownership, operation and development of wireless and broadcast communication tower sites in the U.S., Mexico and Brazil. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally poor debt management, premium valuation and weak operating cash flow.

AMT reported significant earnings per share improvement in the most-recent quarter compared with the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMT has increased its bottom line by earning 22 cents vs. 6 cents in the prior year. This year, the market expects an improvement in earnings (50 cents vs. 22 cents).

The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the wireless telecommunication services industry. The net income increased by 894.3% when compared with the same quarter one year prior, rising from -$19.99 million to $158.79 million.