Herman Miller (MLHR 39.00, +1.75, +4.70%) jumped 9.7% in pre-market trade after beating earnings expectations and issuing positive guidance. The early
gain has lifted the stock near its record high (41.85) from late January.
The designer and manufacturer of office furniture reported above-consensus first quarter earnings of $0.69/share on a 7.6% year/year increase in revenue to $624.6 mln, which was just ahead of estimates.
Looking ahead, the company expects second quarter earnings between $0.70/share and $0.74/share on revenue between $635 mln and $655 mln. The midpoint of the company's earnings guidance range matches market expectations while the company's revenue outlook is a bit ahead of expectations.
Management acknowledged that while tariffs could present a headwind, the company remains confident in its ability to continue executing its strategy.
The company received new orders in the amount of $630.6 mln during the first quarter, representing year/year growth of 6.0%. Backlog increased 4.3% to $346.4 mln.
Gross margin weakened to 36.0% from 37.4% one year ago. Nearly half of the decline was due to the adoption of a new revenue recognition standard at the start of the fiscal year.
Herman Miller recorded growth in organic sales and orders in all geographies. North American organic net sales grew 3.5% to $344.2 mln while organic orders increased 2.4% to $345.6 mln.
Europe and Latin America organic net sales increased 22.1% to $116.6 mln while organic orders jumped 14.4% to $126.5 mln.
Specialty organic net sales grew 2.1% to $77.3 mln while organic orders rose 5.5% to $80.1 mln.
Consumer segment organic net sales rose 12.8% to $88.2 mln while organic orders increased 5.8% to $80.5 mln.
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