HNI Corporation Updates Earnings Guidance For Third Quarter And Fiscal Year 2016
HNI Corporation (NYSE: HNI) announced today that revenue and earnings for the third quarter and fiscal year 2016 are expected to be below the Corporation’s previous outlook. Demand in the office furniture and hearth segments is expected to be lower than previously forecasted. Office furniture business sales will be lower than expected due to overall softer than anticipated demand, subdued small business confidence and lower than anticipated project activity. Hearth sales will be lower due to slower than expected housing starts, acquisition integration and acquired dealer transitions timing, and continued decline in pellet appliances. HNI now estimates third quarter sales to be down 4 to 7 percent compared to previous guidance of flat to up 3 percent. As a result, the Corporation expects third quarter non-GAAP earnings per diluted share to be in the range of $0.74 to $0.79 compared to its previous guidance of $0.90 to $0.95.
“Sales for the quarter did not develop as expected. Economic uncertainty is weighing on our markets making them more dynamic and difficult to predict than recent periods. Our operational performance continues to deliver strong results in a lower sales environment. Our businesses continue to compete well and we remain confident in our strategies as we respond to the changing environment. We maintain a positive long-term outlook,” said Stan Askren, HNI Corporation Chairman, President, and Chief Executive Officer.
The Corporation now estimates full year non-GAAP earnings per diluted share to be in the range of $2.50 to $2.70 on a sales decrease of 3 to 6 percent versus the prior year. This compares to prior guidance of non-GAAP earnings per diluted share of $2.80 to $2.95 on a sales decrease of 1 to 3 percent.
HNI expects to issue a press release updating third quarter 2016 financial results after market close on Wednesday, October 19, 2016 and hold a conference call on Thursday, October 20, 2016 to discuss third quarter financial results and fourth quarter 2016 outlook.
About HNI Corporation
HNI Corporation is a NYSE traded company (ticker symbol: HNI) providing products and solutions for the home and workplace environments. HNI is a leading global provider and designer of office furniture and the nation’s leading manufacturer and marketer of hearth products. We sell the broadest and deepest selection of quality office furniture solutions available to meet the needs of every customer through an extensive portfolio of well-known and trusted brands. Our hearth products are the strongest, most respected brands in the industry and include a full array of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings and accessories. More information can be found on the Corporation’s website at www.hnicorp.com.