HNI Corp Expects Q3 Adj Eps Below Q2 Vs $0.64 Est

Author: Benzinga Newsdesk | August 08, 2023 07:39am

Fiscal Year 2023 Outlook

• Demand environment. The Corporation expects second half organic revenue to grow at a rate in the low single-digits for Workplace Furnishings. This outlook is consistent with first half order patterns.
  
  In Residential Building Products, the Corporation expects year-over-year revenue declines to moderate in the second half due to lower prior-year comparisons, moving past the normalization of trade inventory in the remodel/retrofit channel, and improved trends in new construction. The Corporation expects Residential Building Products revenue to decline at a year-over-year rate in the high teens during the second half of 2023 with the fourth quarter declining at a slower rate than the third quarter.
• Third quarter commentary. The Corporation expects third quarter 2023 non-GAAP EPS to be modestly below third quarter 2022 levels primarily due to lower volume in Residential Building Products and normalization of variable compensation, partially offset by higher profitability in Workplace Furnishings.
• Impact of Kimball International excluding Poppin. For 2023, the Corporation expects the Kimball International acquisition excluding the impact of Poppin to be solidly accretive to non-GAAP EPS and add $340 to $370 million of revenue. The benefit to non-GAAP EPS is expected to be greatest in the fourth quarter.
• Impact of Poppin. The Corporation expects to complete the divestiture of Poppin during the third quarter of 2023. Prior to the exit, Poppin is expected to generate an operating loss of $3.5 to $4.0 million and revenue of $7 to $9 million during the third quarter.

Posted In: HNI