MillerKnoll, Inc. Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

It's been a sad week for MillerKnoll, Inc. (NASDAQ:MLKN), who've watched their investment drop 13% to US$23.50 in the week since the company reported its quarterly result. It was a pretty negative result overall, with revenues of US$862m missing analyst predictions by 3.1%. Worse, the business reported a statutory loss of US$0.02 per share, a substantial decline on analyst expectations of a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for MillerKnoll

Taking into account the latest results, the consensus forecast from MillerKnoll's four analysts is for revenues of US$3.69b in 2025. This reflects an okay 3.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 82% to US$1.68. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.67b and earnings per share (EPS) of US$1.95 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The average price target fell 5.7% to US$33.00, with reduced earnings forecasts clearly tied to a lower valuation estimate. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic MillerKnoll analyst has a price target of US$38.00 per share, while the most pessimistic values it at US$28.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that MillerKnoll's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.4% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than MillerKnoll.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of MillerKnoll's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on MillerKnoll. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for MillerKnoll going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for MillerKnoll (of which 1 is significant!) you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.