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Dec 31, 2022
HNI Q4 2022 Earnings Report
HNI Corporation reported earnings for Q4 and Fiscal Year 2022.
Key Takeaways
HNI Corporation's Q4 2022 sales were $568.9 million, a decrease of 6% from the previous year. Net income for the quarter was $16.3 million, with GAAP EPS at $0.39 and non-GAAP EPS at $0.63.
Delivered 47 percent year-over-year growth in fourth quarter non-GAAP earnings per share.
Non-GAAP gross and operating margins in the fourth quarter expanded 390 basis points and 210 basis points, respectively, on a year-over-year basis.
Workplace Furnishings segment non-GAAP operating margin expanded 150 basis points from fourth quarter 2021 levels despite top line pressure from softer economic conditions.
Residential Building Products segment operating margin expanded 170 basis points versus the prior-year period to nearly 20 percent.
HNI
HNI
HNI Revenue by Segment
Revenue by Segment
Workplace Furnishings Revenue
CapyFin.comResidential Building Products Revenue
CapyFin.com Forward Guidance
HNI Corporation anticipates continued pressure from lower volumes in 2023 and has implemented measures to mitigate short-term volume pressure and drive long-term margin improvement.
Positive Outlook
- Improved productivity
- Favorable price-cost
- Cost actions to more than offset lower volume
- Focused margin expansion initiatives continue to gain traction.
- Expects to maintain a strong balance sheet throughout 2023
Challenges Ahead
- Broader macroeconomic concerns continue to negatively impact Workplace Furnishings demand.
- Expects these factors to lower volume levels on a year-over-year basis in Residential Building Products.
- Difficult year-ago comparisons
- Impact of a softening demand environment tied to slowing economic growth.
- Expects non-GAAP operating income to be approximately breakeven in the first quarter of 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income