Herman Miller projected diluted earnings of 44 cents a share to 48 cents a share, while analysts surveyed by Thomson Reuters had expected 48 cents a share.
Late Wednesday, the office furniture maker reported fourth quarter net earnings of 28 cents a share, compared to 40 cents a share in the same period a year ago, due to weak sales in its North American division.
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Separately, TheStreet Ratings team rates MILLER (HERMAN) INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MILLER (HERMAN) INC (MLHR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MLHR's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 38.08% is the gross profit margin for MILLER (HERMAN) INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.25% trails the industry average.
- The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.78 is somewhat weak and could be cause for future problems.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- MILLER (HERMAN) INC has improved earnings per share by 17.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MILLER (HERMAN) INC reported lower earnings of $1.16 versus $1.29 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $1.16).
- You can view the full analysis from the report here: MLHR Ratings Report
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