NYSE$HNI

HNI Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong second quarter EPS driven by Workplace Furnishings profit transformation, Kimball International accretion, and Residential Building Products actions.

HNI Corporation reported net sales of $623.7 million and net income of $36.0 million for the second quarter ended June 29, 2024. Non-GAAP EPS of $0.79 was a record for the second quarter, driven by continued operating margin expansion in Workplace Furnishings, strong accretion from Kimball International, and profit growth in Residential Building Products.

  • Delivered strong second quarter EPS, GAAP $0.75 / non-GAAP $0.79 (+44% YoY).
  • Expanded operating margins in Workplace Furnishings +750 bps GAAP / +370 bps non-GAAP YoY.
  • Net sales growth expected to return in both segments during the second half of 2024.
  • 2024 EPS expected to deliver strong growth and reach an all-time high.

Headline financials

Total Revenue

$624M

Previous: $564M+10.7%
EPS

$0.75

Previous: $0.55+36.4%
Gross Margin

41.9%

Previous: 38.3%+9.4%
Operating Margin

8.6%

Previous: -0.6%+1533.3%
SG&A Expense

$33.00

Previous: $37.40-11.8%
Effective Tax Rate

21.7%

Previous: -41.8%+151.9%
Non-GAAP Gross Margin

42.0%

No prior period
Non-GAAP Operating Margin

9.0%

No prior period
Non-GAAP Tax Rate

21.7%

No prior period
Capital Expenditures

-$17.5M

No prior period
Free Cash Flow

$36M

Previous: -$12.8M+381.3%
Net Income

$36M

Previous: -$12.8M+381.3%
Operating Income

$53.4M

Previous: -$3.6M+1583.3%
Gross Profit

$261M

Previous: $216M+21.3%
Cash & Equivalents

$28.2M

Previous: $23.8M+18.5%
Total Assets

$1.94B

Previous: $2.08B-6.5%
Stock-Based Comp

$4M

Previous: $3.1M+29.0%

Revenue & EPS history

HNI · Revenue · Quarterly

$624M

Q2 2024+10.7%vs Q2 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

Full-year non-GAAP earnings per share are expected to increase strongly from 2023 and reach record levels. Continued improvement in the second half is expected to be driven by margin expansion in both Workplace Furnishings and Residential Building Products.

Tailwinds

  • Workplace Furnishings net sales are expected to increase at a low-single digit rate year-over-year in the second half of 2024.
  • Residential Building Products net sales are projected to grow at a mid-single digit pace versus the same period in 2023.
  • Year-over-year trends in both segments are expected to improve from the third quarter to the fourth quarter.
  • Continued improvement in the second half is expected to be driven by margin expansion in both Workplace Furnishings and Residential Building Products.
  • The Corporation expects $70 to $75 million of savings associated with KII synergies and the ramp of its Mexico facility.

Headwinds

  • Workplace Furnishings outlook represents a modest reduction from the outlook provided in the previous earnings release and primarily reflects timing in the contract space.
  • Residential Building Products net sales decreased 4.6 percent from the prior-year quarter primarily due to housing market weakness.
  • Remodel/retrofit sales declining at a higher rate than new construction.
  • Orders in the Residential Building Products segment decreased four percent compared to the second quarter of 2023.
  • Changes in the Corporation’s pre-season, early order program negatively impacted the second quarter order rate.

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 Q2 2024

Historical avgQ2 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%

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