Herman Miller (MLHR 37.80, +3.35, +9.72%) opened over 16% higher
after beating quarterly expectations and boosting its dividend.
The Michigan-based designer and manufacturer of home and office furniture reported above-consensus fourth quarter earnings of $0.66/ share on a 7.1% year/year increase in revenue to $618.0 mln, which also exceeded expectations. In addition to beating estimates, the company announced that its quarterly cash dividend has been increased to $0.1975/share from $0.18/share.
Gross margin declined to 36.9% from 38.3% due to a higher cost of sales, driven by $1.5 mln increase related to freight and distribution costs in the company's manufacturing operation in China.
Orders grew 9.3% to $620.8 mln while backlog grew 6.8% to $344.5 mln.
Looking at the segment breakdown, North America organic net sales declined 2.7% year/year to $308.0 mln while organic order growth hit 4.1%, increasing to $322.4 mln.
Europe and Latin America organic net sales jumped 29.9% to $120.3 while organic orders grew 19.8% to $107.6 mln.
Specialty organic net sales rose 12.9% to $83.1 mln while organic orders increased 11.9% to $84.8 mln.
Consumer segment organic net sales increased 11.2% to $100.1 mln while organic orders grew 11.8% to $101.6 mln.
Going forward, Herman Miller expects that first quarter earnings will be between $0.63/share and $0.67/share while revenue is expected between $610 mln and $630 mln. The company's guidance range encompasses current market estimates.
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