Back to top

Image: Bigstock

MillerKnoll to Report Q3 Earnings: What's in Store for the Stock?

Read MoreHide Full Article

MillerKnoll, Inc. (MLKN - Free Report) is set to release its third-quarter fiscal 2025 results on March 26, 2025, after market close.

In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 1.9%, but decreased 6.8% year over year. Net sales surpassed the consensus mark by 0.8% and increased 2.2% year over year.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

MillerKnoll’s earnings topped the consensus mark in the trailing three out of four quarters and missed once, the average surprise being 4.1%.

MLKN’s Estimate Revision Trend

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 implies 2.2% fall from the year-ago quarter’s reported EPS of 45 cents.

MillerKnoll, Inc. Price and EPS Surprise

MillerKnoll, Inc. Price and EPS Surprise

MillerKnoll, Inc. price-eps-surprise | MillerKnoll, Inc. Quote

The consensus mark for net sales is pegged at $922.3 million, indicating a 5.7% year-over-year increase.

Factors to Note Ahead of MLKN’s Q3 Release

MillerKnoll’s net sales are anticipated to have increased year over year in the fiscal third quarter, driven by strong order growth and an improving demand environment in most of its markets. Also, focus on new product launches, promotions and global expansion is expected to have supported growth. Furthermore, pricing activity and a solid sales funnel are likely to have aided its fiscal third-quarter performance.

For the fiscal third quarter, the company expects net sales to be between $903 million and $943 million, reflecting a year-over-year increase of approximately 5.8% at the midpoint. In the year-ago quarter, the company’s net sales were $872.3 million.

However, it expects typical seasonal softness in its Americas and International Contract businesses, along with the timing of the Chinese New Year holiday, to impact fiscal third-quarter results.

Meanwhile, higher operating expenses due to increased marketing spend, higher variable expenses and compensation, and benefit costs are expected to have weighed on the company’s bottom line. MLKN projects an adjusted gross margin within the 39-40% range for the quarter compared with 38.6% reported in the prior-year quarter.

Adjusted operating expenses are anticipated to be between $293 million and $303 million, up from $278.9 million reported a year ago. The company expects adjusted EPS in the range of 41-47 cents for the quarter compared with 45 cents reported in the year-ago quarter.

What Our Quantitative Model Predicts for MLKN

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 is not the case here, as you will see below.

MLKN’s 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.

MLKN’s Zacks Rank: MillerKnoll currently carries a Zacks Rank #3.

Stocks With Favorable Combination

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around

MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +11.6% and a Zacks Rank of 3. You can see the complete list of todays Zacks #1 Rank stocks here.

MGM's earnings for the to-be-reported quarter are expected to decline 29.7% year over year. The company reported an earnings beat in the trailing three quarters and missed once, the average surprise being 21.8%.

Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +1.52% and a Zacks Rank of 3 at present.

HLT reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 5.1%. The company’s earnings for the to-be-reported quarter are expected to grow 5.9% year over year.

Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +1.38% and a Zacks Rank of 3 at present.

CHH reported better-than-expected earnings in three of the trailing four quarters and missed once, the average surprise being 7.5%. The company’s earnings for the to-be-reported quarter are expected to grow 9.4% year over year.

Published in