NYSE$HNI

HNI Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

HNI Corporation reported earnings for Q4 and Fiscal Year 2022.

HNI Corporation's Q4 2022 sales were $568.9 million, a decrease of 6% from the previous year. Net income for the quarter was $16.3 million, with GAAP EPS at $0.39 and non-GAAP EPS at $0.63.

  • Delivered 47 percent year-over-year growth in fourth quarter non-GAAP earnings per share.
  • Non-GAAP gross and operating margins in the fourth quarter expanded 390 basis points and 210 basis points, respectively, on a year-over-year basis.
  • Workplace Furnishings segment non-GAAP operating margin expanded 150 basis points from fourth quarter 2021 levels despite top line pressure from softer economic conditions.
  • Residential Building Products segment operating margin expanded 170 basis points versus the prior-year period to nearly 20 percent.

Headline financials

Total Revenue

$569M

Previous: $603M-5.6%
EPS (adj)

$0.63

Previous: $0.43+46.5%
Gross Margin

36.6%

Previous: 32.2%+13.7%
Operating Margin

4.0%

Previous: 2.0%+100.0%
SG&A Expense

$31.50

Previous: $29.20+7.9%
Effective Tax Rate

21.0%

Previous: 19.4%+8.2%
Net Income

$16.3M

Previous: $22.6M-27.8%
Operating Income

$23M

Previous: $31.5M-27.0%
Gross Profit

$208M

Previous: $209M-0.3%
Cash & Equivalents

$17.4M

Previous: $116M-85.0%
Total Assets

$1.41B

Previous: $1.42B-0.2%
Stock-Based Comp

$2.6M

Previous: $7.83M-66.8%

Revenue & EPS history

HNI · Revenue · Quarterly

$569M

Q4 2022-5.6%vs Q4 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

HNI · $569M total across 2 segments · Q4 2022

  • Workplace Furnishings
    $351M
  • Residential Building
    $218M

Forward guidance

HNI Corporation anticipates continued pressure from lower volumes in 2023 and has implemented measures to mitigate short-term volume pressure and drive long-term margin improvement.

Tailwinds

  • Improved productivity
  • Favorable price-cost
  • Cost actions to more than offset lower volume
  • Focused margin expansion initiatives continue to gain traction.
  • Expects to maintain a strong balance sheet throughout 2023

Headwinds

  • Broader macroeconomic concerns continue to negatively impact Workplace Furnishings demand.
  • Expects these factors to lower volume levels on a year-over-year basis in Residential Building Products.
  • Difficult year-ago comparisons
  • Impact of a softening demand environment tied to slowing economic growth.
  • Expects non-GAAP operating income to be approximately breakeven in the first quarter of 2023.

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 Q4 2022

Historical avgQ4 2022

+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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