Herman Miller Profit Misses View, Outlook Weak; Shares Down 11%

(RTTNews) - Shares of Herman Miller Inc. (MLHR) slipped 11 percent in extended hours on Wednesday after the office furniture maker's first quarter profit and revenues fell short of Wall Street estimates. The company detailed a weak outlook for the second quarter.

Michigan-based Herman Miller's first-quarter profit rose to $36.3 million or $0.60 per share from $33.5 million or $0.56 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 5.9 percent to $598.6 million from $565.4 million a year earlier. Analysts had a consensus revenue estimate of $614.2 million for the quarter.

Sales at the company's key North American Furniture Solutions segment climbed 8.0 percent to $365.1 million from last year. Sales at ELA furniture solutions segment dropped 5.1 percent to $97.3 million, while specialty segment sales rose 5.2 percent to 60.8 million. Consumer segment reported sales of $75.4 million, up 5.9 percent from last year.

Gross margin for the quarter improved to 38.4 percent from 38.3 percent last year.

Looking forward to the second quarter, Herman Miller expects earnings of $0.52 to $0.56 per share on sales of $580 million to $600 million. Analysts currently expect earnings of $0.60 per share on revenues of $601.1 million for the quarter.

MLHR closed Wednesday's trading at $32.15 on the Nasdaq. The stock, however, slipped $3.55 or 11.04% in the after-hours trading.