News

MillerKnoll Inc. Stocks Rise on Raised Profit Outlook

James L. Flint

• September 26, 2023

Shares of MillerKnoll Inc. (MLKN, -3.04%) experienced a significant surge of 14.1% after hours on Tuesday. This boost came after the renowned furniture manufacturer raised its full-year profit outlook, demonstrating resilience in the face of challenges posed by a pressured housing market and unstable economies in China and Europe.

Upgraded Earnings Forecast for Fiscal 2024

The company's executives have revised their full fiscal 2024 adjusted earnings per share forecast, setting it within an impressive range of $1.85 to $2.15. This update far surpasses initial expectations, which estimated earnings per share to fall between $1.70 and $2.00, as stated back in July.

Positive First-Quarter Results

MillerKnoll's optimistic forecast is bolstered by the successful performance of its fiscal first-quarter results. The company managed to exceed expectations, with particular support from the return to offices post-pandemic and notable profit improvement in the Americas region.

First-Quarter Financial Highlights

During the first quarter, MillerKnoll reported a net income of $16.1 million, equivalent to 22 cents per share. In comparison, the same period last year showcased figures of $27.4 million in net income or 34 cents per share. However, after adjusting for amortization, integration, and restructuring charges, MillerKnoll earned a commendable 37 cents per share.

Moreover, the company's revenue for the first quarter amounted to $917.7 million, slightly down from $1.08 billion seen in the prior-year quarter.

Analysts' Expectations and FactSet Poll

Analysts previously surveyed by FactSet had projected MillerKnoll to report adjusted earnings per share of 21 cents, alongside sales reaching $896 million. The company not only met these expectations but surpassed them, reinforcing their optimistic forecast and invigorating investor confidence.

In conclusion, MillerKnoll Inc. demonstrates promising potential with its recent raised profit outlook and strong financial performance. With an eye towards the future, the company continues to navigate challenging market conditions while seizing growth opportunities.