Analysts Have Made A Financial Statement On HNI Corporation's (NYSE:HNI) Third-Quarter Report

HNI Corporation (NYSE:HNI) shareholders are probably feeling a little disappointed, since its shares fell 4.6% to US$49.28 in the week after its latest quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at US$672m, statutory earnings were in line with expectations, at US$0.98 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for HNI

Taking into account the latest results, the current consensus from HNI's four analysts is for revenues of US$2.64b in 2025. This would reflect an okay 2.9% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 41% to US$3.67. Before this earnings report, the analysts had been forecasting revenues of US$2.73b and earnings per share (EPS) of US$3.84 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the US$61.00 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on HNI, with the most bullish analyst valuing it at US$63.00 and the most bearish at US$60.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that HNI's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2025 being well below the historical 3.9% p.a. growth over the last 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 HNI.

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 negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$61.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for HNI going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for HNI that you need to take into consideration.

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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.