Herman Miller Falls After Q4 Earnings

Office furniture manufacturer Herman Miller (NASDAQ: MLHR) released its fiscal fourth-quarter earnings results after the closing bell on Wednesday. The company reported both earnings per share and revenue that was well ahead of Wall Street estimates. The company's guidance for the fiscal first-quarter, however, was disappointing and the stock was last trading down around 4.45 percent in the after hours to $26.00. Management CommentaryBrian Walker, Chief Executive Officer, stated, "Our fourth quarter earnings were fueled by topline growth and strong margins, driving a significant increase in adjusted earnings per share. Beyond this strong financial performance, we advanced and accelerated our strategy with the acquisition of Maharam. This acquisition creates a highly complementary and leading presence for us in the margin-rich textiles and wall coverings categories, with further opportunities to extend Maharam's reach into new consumer and international markets." Walker added, "The acquisition was followed by this month's public introduction of our Living Office vision and the unveiling of multiple new and innovative designs for the office landscape. Collectively our financial performance and strategic actions give us great momentum and a springboard for further success in the year ahead."Fiscal Q4 Results The company reported net income of $23.4 million or $0.40 per share, compared to $11.9 million or $0.20 per share, in last year's corresponding quarter. On an adjusted basis, which is comparable to analysts' consensus, the company's earnings per share were $0.43 versus $0.28 last year. This easily topped analysts' consensus EPS estimates of $0.36. Revenue in the quarter was up 9.3 percent to $460.0 million from $420.7 million last year. This also came in well ahead of Wall Street revenue expectations of $440.20 million. Gross margin in the quarter fell to 35.4 percent from 35.7 percent in last year's fourth-quarter, but operating margin rose to 7.8 percent from 7.1 percent a year ago. Fiscal Q1 GuidanceLooking ahead to the first-quarter, Herman Miller guided for adjusted EPS between $0.36 and $0.41 on revenue of $455 million to $475 million. This compares to current consensus estimates calling for EPS of $0.46 on revenue of $471.50 million.