Stock Analysis

Upgrade: The Latest Revenue Forecasts For HNI Corporation (NYSE:HNI)

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HNI Corporation (NYSE:HNI) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst has sharply increased their revenue numbers, with a view that HNI will make substantially more sales than they'd previously expected.

After this upgrade, HNI's single analyst is now forecasting revenues of US$2.7b in 2023. This would be a meaningful 18% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to nosedive 35% to US$1.74 in the same period. Previously, the analyst had been modelling revenues of US$2.3b and earnings per share (EPS) of US$1.62 in 2023. The forecasts seem more optimistic now, with a nice increase in revenue and a modest lift to earnings per share estimates.

Check out our latest analysis for HNI

NYSE:HNI Earnings and Revenue Growth June 26th 2023

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that HNI's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 0.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that HNI is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at HNI.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

Valuation is complex, but we're helping make it simple.

Find out whether HNI is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.