HNI Corporation (HNI) rose 19.0% to close at $47.83 per share during the second week of November 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 19.0%, 27.1%, and 35.3%, respectively, as of November 11.
HNI is trading 17.5% above its 20-day moving average, 9.8% above its 50-day moving average, and 10.6% above its 200-day moving average.
Related ETF and peers
The Vanguard Small-Cap ETF (VB) invests 0.08% of its holdings in HNI. The ETF tracks the CRSP US Small Cap Index. The market cap–weighted index includes the bottom 2%–15% of the investable universe. The YTD price movement of VB was 12.0% on November 11.
The market caps of HNI’s competitors are as follows:
HNI Corporation has declared a quarterly dividend of $0.28 per share on its common stock. The dividend will be paid on December 1, 2016, to shareholders of record at the close of business on November 21, 2016.
Performance of HNI in 3Q16
HNI reported 3Q16 net sales of $584.6 million, a fall of 5.1% compared to its net sales of $615.9 million in 3Q15. The net sales of its Office Furniture and Hearth Products segments fell 4.4% and 7.3%, respectively, in 3Q16 compared to 3Q15. The company’s gross profit margin expanded 30 basis points, and its operating margin narrowed 110 basis points in 3Q16, compared to the prior year’s period.
HNI’s net income and EPS (earnings per share) fell to $33.8 million and $0.74, respectively, in 3Q16, compared to $40.8 million and $0.90, respectively, in 3Q15. It reported adjusted EPS of $0.80 in 3Q16, a fall of 14.0% compared to 3Q15.
HNI’s cash and cash equivalents fell 4.2%, and its inventories rose 20.4%, respectively, in 3Q16, compared to 4Q15. Its current ratio rose to 1.1x, and its debt-to-equity ratio fell to 1.60x in 2Q16, compared to its current and debt-to-equity ratios of 1.0x and 1.65x, respectively, in 4Q15.
HNI expects its sales to fall 1%–4% in 4Q16. It expects its non-GAAP (generally accepted accounting principles) EPS to be in the range of $2.60–$2.70 in 2016.
The company has made the following projections for 2017:
- sales of -2%–2%
- non-GAAP EPS of $2.75–$3.15
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