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In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 13.5% and increased 28.3% year over year. However, net sales missed the consensus mark by 1% and declined 11% year over year.
MillerKnoll’s earnings topped the consensus mark in each of the last four quarters, the average surprise being 33.3%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the company's fiscal third-quarter earnings per share (EPS) has remained unchanged at 44 cents over the past 60 days. The current estimate suggests an 18.5% decline from the year-ago quarter’s reported EPS value of 54 cents.
The consensus mark for revenues is $910.2 million, suggesting a 7.6% year-over-year decrease.
Factors to Note
MillerKnoll’s net sales and EPS are expected to have declined year over year in the fiscal third quarter due to a notable decline in sales volume on the back of the soft North American housing market, along with challenging macroeconomic conditions in Europe and China. The ongoing uncertainty in the economy is likely to have decreased the contributions from the company’s Global Retail, International & Specialty, and Americas segments, thus affecting its top line.
For fiscal third-quarter 2024, the company expects net sales between $890 million and $930 million, down on a year-over-year basis.
MLKN projects adjusted gross margin between 37.8% and 38.8% for the quarter, up from 35.7% from the previous year. This is likely to have been driven by strategic inventory management, moderating input costs, the realization of price optimization strategies, and benefits from its ongoing synergy efforts.
Operating expenses are expected to be between $285 million and $295 million, up from $277.6 million reported a year ago. The company expects diluted adjusted EPS in the range of 40-48 cents for the quarter, down from the year-ago quarter.
That said, a diversified business model, along with a solid brand portfolio and customer segments and geographies, provide risk diversification and opportunities for growth.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for MLKN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MillerKnoll currently carries a Zacks Rank #3.
Stocks Poised to Beat on Earnings
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.
HAS is expected to register a 2900% increase in earnings for the to-be-reported quarter. It reported lower-than-expected earnings in three of the trailing four quarters and met on one occasion, the average being negative 32.8%.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +11.70% and a Zacks Rank of 2.
MGM’s earnings for the to-be-reported quarter are expected to increase 38.6%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 271.5%.
Carnival Corp. (CCL - Free Report) currently has an Earnings ESP of +6.26% and a Zacks Rank of 2.
CCL’s earnings for the to-be-reported quarter are expected to increase 69.1%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 19.2%.
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MillerKnoll (MLKN) to Report Q3 Earnings: What's in Store?
MillerKnoll, Inc. (MLKN - Free Report) is set to release its third-quarter fiscal 2024 results on Mar 27, 2024, after market close.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 13.5% and increased 28.3% year over year. However, net sales missed the consensus mark by 1% and declined 11% year over year.
MillerKnoll’s earnings topped the consensus mark in each of the last four quarters, the average surprise being 33.3%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the company's fiscal third-quarter earnings per share (EPS) has remained unchanged at 44 cents over the past 60 days. The current estimate suggests an 18.5% decline from the year-ago quarter’s reported EPS value of 54 cents.
MillerKnoll, Inc. Price and EPS Surprise
MillerKnoll, Inc. price-eps-surprise | MillerKnoll, Inc. Quote
The consensus mark for revenues is $910.2 million, suggesting a 7.6% year-over-year decrease.
Factors to Note
MillerKnoll’s net sales and EPS are expected to have declined year over year in the fiscal third quarter due to a notable decline in sales volume on the back of the soft North American housing market, along with challenging macroeconomic conditions in Europe and China. The ongoing uncertainty in the economy is likely to have decreased the contributions from the company’s Global Retail, International & Specialty, and Americas segments, thus affecting its top line.
For fiscal third-quarter 2024, the company expects net sales between $890 million and $930 million, down on a year-over-year basis.
MLKN projects adjusted gross margin between 37.8% and 38.8% for the quarter, up from 35.7% from the previous year. This is likely to have been driven by strategic inventory management, moderating input costs, the realization of price optimization strategies, and benefits from its ongoing synergy efforts.
Operating expenses are expected to be between $285 million and $295 million, up from $277.6 million reported a year ago. The company expects diluted adjusted EPS in the range of 40-48 cents for the quarter, down from the year-ago quarter.
That said, a diversified business model, along with a solid brand portfolio and customer segments and geographies, provide risk diversification and opportunities for growth.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for MLKN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MillerKnoll currently carries a Zacks Rank #3.
Stocks Poised to Beat on Earnings
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.
Hasbro, Inc. (HAS - Free Report) has an Earnings ESP of +24.90% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
HAS is expected to register a 2900% increase in earnings for the to-be-reported quarter. It reported lower-than-expected earnings in three of the trailing four quarters and met on one occasion, the average being negative 32.8%.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +11.70% and a Zacks Rank of 2.
MGM’s earnings for the to-be-reported quarter are expected to increase 38.6%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 271.5%.
Carnival Corp. (CCL - Free Report) currently has an Earnings ESP of +6.26% and a Zacks Rank of 2.
CCL’s earnings for the to-be-reported quarter are expected to increase 69.1%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 19.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.