NYSE$HNI

HNI Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported strong earnings growth driven by Workplace Furnishings profit transformation and solid profit in Residential Building Products despite a soft housing market.

HNI Corporation reported a strong start to 2024, with first-quarter earnings per share up considerably on both a GAAP and non-GAAP basis versus the prior year, despite an 8.1% year-over-year organic revenue decline. Profit transformation actions in Workplace Furnishings and solid accretion from Kimball International drove the positive results.

  • EPS of $0.37 increased 825% on a GAAP basis and 185% on a non-GAAP basis YoY.
  • Workplace Furnishings operating margin expanded 730 bps GAAP and 720 bps non-GAAP YoY.
  • Kimball International generated an operating profit margin of 9.3 percent and added an estimated $0.10 to non-GAAP EPS.
  • Gross leverage was 1.9x, unchanged from the fourth quarter of 2023

Headline financials

Total Revenue

$588M

Previous: $479M+22.7%
EPS

$0.37

Previous: $0.13+184.6%
Gross Margin

39.6%

Previous: 36.4%+8.8%
Operating Margin

5.0%

Previous: 1.3%+284.6%
SG&A Expense

$34.50

Previous: $35.00-1.4%
Effective Tax Rate

19.6%

Previous: 58.4%-66.4%
Non-GAAP Gross Margin

39.6%

No prior period
Non-GAAP Operating Margin

5.1%

No prior period
Non-GAAP Tax Rate

19.6%

No prior period
Capital Expenditures

-$11.2M

No prior period
Free Cash Flow

$17.7M

Previous: $1.6M+1006.3%
Net Income

$17.7M

Previous: $1.6M+1006.3%
Operating Income

$29.7M

Previous: $6.4M+364.1%
Gross Profit

$233M

Previous: $174M+33.6%
Cash & Equivalents

$27M

Previous: $16.8M+60.7%
Total Assets

$1.91B

Previous: $1.38B+38.3%
Stock-Based Comp

$7.7M

Previous: $4.5M+71.1%

Revenue & EPS history

HNI · Revenue · Quarterly

$588M

Q1 2024+22.7%vs Q1 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

HNI · $712M total across 2 segments · Q3 2023

  • Workplace Furnishings
    $537M+43.1%
  • Residential Building
    $175M-21.8%

Forward guidance

Second quarter non-GAAP earnings per share is expected to increase solidly year-over-year driven by the benefit of KII and continued profit transformation in Legacy Workplace Furnishings despite increasingly difficult year-ago comps.

Tailwinds

  • Second quarter non-GAAP earnings per share is expected to increase solidly year-over-year driven by the benefit of KII
  • Continued profit transformation in Legacy Workplace Furnishings is expected
  • KII is expected to add $75 to $80 million of incremental revenue to second quarter results.
  • Annual cost synergies resulting from the combination with KII to total $35 million when mature.
  • Year-over-year growth returning in the second half for Residential Building Products

Headwinds

  • Increasingly difficult year-ago comps
  • Workplace Furnishings organic segment revenue to be down slightly compared to the same quarter of 2023.
  • Residential Building Products, the Corporation expects year-over-year declines to moderate with second quarter revenue down at a low-single digit rate versus the year-ago period.
  • Softer conditions in the R&R space
  • Slower start in new construction

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.4%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-0.3%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+13.8%

Q2 2023

Best reaction

-19.8%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.1%-10.6%-14.5%
Q4 2025-5.0%-7.9%-29.2%
Q3 2025-0.4%-9.0%-8.5%
Q2 2025+3.3%+1.8%+6.6%
Q1 2025+1.1%+12.6%+7.5%
Q4 2024+0.3%-3.0%-11.5%
Q3 2024-4.2%-4.1%+8.6%
Q2 2024+11.5%+12.1%+8.4%
Q1 2024-1.3%+4.0%+4.6%
Q4 2023+0.5%+2.2%+3.7%
Q3 2023+9.6%+15.5%+17.1%
Q2 2023+13.8%+14.7%+10.0%
Q1 2023+8.6%+9.9%+9.3%
Q4 2022-0.6%-0.6%-14.2%
Q3 2022+1.8%+2.8%+5.0%
Q2 2022-2.4%-7.0%-7.2%
Q1 2022-0.4%-4.5%+7.9%
Q4 2021-8.1%-6.1%-9.8%
Q3 2021-7.3%-6.4%+6.5%
Q2 2021-4.9%-2.4%-1.7%
Q1 2021+1.8%+3.9%+10.3%
Q3 2020+1.3%+1.0%+4.2%
Q2 2020+6.0%-1.1%+4.4%
Q1 2020-0.0%+1.7%+6.9%
Q4 2019+7.1%-2.2%-42.6%
Q3 2019+0.8%+1.0%+2.5%
Q2 2019-1.3%+0.4%-10.9%
Q1 2019-6.9%-3.7%-7.3%
Q4 2018-11.2%-8.1%-12.2%
Q3 2018+2.1%-1.6%-2.0%
Q2 2018+11.7%+7.5%+10.6%
Q1 2018-1.1%+2.0%+10.9%
Q4 2017+4.1%+3.0%+9.4%
Q3 2017-19.8%-16.4%-21.5%
Q2 2017-6.0%-5.3%-7.1%
Q1 2017-1.4%-1.7%-8.5%
Q4 2016-0.0%-1.7%-2.3%
Q3 2016+11.8%+13.2%+37.3%
Q2 2016+5.8%+5.2%+7.8%
Q1 2016+4.9%
Q4 2015-1.1%
Q3 2015-7.4%
Q2 2015-1.9%
Q1 2015-9.9%
Q4 2014-4.1%
Q3 2014+10.4%
Q2 2014-1.4%
Q1 2014-2.8%
Q4 2013+8.1%
Q3 2013+8.7%
Q2 2013-1.2%
Q1 2013-2.6%
Q4 2012-4.6%
Q3 2012-1.0%
Q2 2012+4.6%
Q1 2012+1.0%
Q4 2011-1.8%
Q1 2010-1.8%
Q3 2011+12.5%
Q2 2011-3.8%
Q4 2009+4.8%
Q1 2011+1.7%
Q3 2010+3.8%
Q2 2010-2.0%
Q4 2010-2.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro