In Thursday trading, shares of Herman Miller Inc. (MLHR, Financial) plunged on the heels of the company reporting its financial results for the fourth quarter. The company posted adjusted earnings per share of 50 cents. The company’s revenue of $578.4 million was also higher than the figure reported a year earlier by 10.2%. The company managed to beat earnings estimates by 1 cent and revenue estimations by $5.1 million.
Consolidated gross margin was 35.6%, representing a 160 basis point decrease from the figure reported in the same quarter of last fiscal year. Further, operating expenses were $167.5 million compared to $157.8 million in the same quarter a year ago.
Herman Miller ended with total cash and cash equivalents of $193.0 million, an increase of $96.8 million from the previous balance sheet. Cash flow generated from operations was $29.2 million compared to $27.8 million in the same quarter last fiscal year.
Looking ahead, the company expects net sales in the fourth quarter of fiscal 2018 to be between $590 million and $610 million. Moreover, it expects diluted earnings per share between 49 and 53 cents and adjusted diluted earnings per share to range between 56 cents and 60 cents.
The Michaels Companies Inc. (MIK, Financial) stock also fell on Thursday after reporting its financial results for the fourth quarter. The company posted adjusted earnings per share of $1.19, which were in-line the street´s estimations. The company’s revenue of $1.89 billion was also higher than the figure reported a year earlier. Moreover, the company managed to beat revenue expectations by $10 million.
Gross profit increased 9.7% to $774.5 million, from $705.8 million in the fourth quarter of fiscal 2016. It increased 70 basis points to 41.0% compared to 40.3% in the comparable period.
The operating income increased 5.3% to $354.3 million, or 18.7% of sales, compared to $336.6 million, or 19.2% of sales, in the previous same quarter.
Now, the company expects for the first quarter of fiscal 2018, net sales to be between $1.14 billion and $1.15 billion, with comparable store sales to increase 0% to 1.0%. Further, it is expecting adjusted diluted earnings per share between 36 and 38 cents.
Disclosure: The author holds no position in any stocks mentioned.
