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Herman Miller (MLHR) to Post Q1 Earnings: What's in Store?

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Herman Miller, Inc. is slated to report first-quarter fiscal 2020 results on Sep 18, after the bell.

The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all of the trailing four quarters with an average positive surprise of 7%.

The stock has gained a massive 47.4% year to date, significantly outperforming the 24.4% rally of the industry it belongs to.

How Things Are Shaping Up

The Zacks Consensus Estimate for revenues in the to-be-reported quarter stands at $662 million, indicating year-over-year growth of 5.9%. The expected growth is likely to be driven by strength in International Contract as well as Retail segments.

Growth in the HAY brand, new studios, e-commerce, outlets and contract channels should continue to drive the Retail segment.  International Contract is likely to be driven by the company’s broad and expanding dealer distribution. Sales are expected to grow in India, China and Japan.

In fourth-quarter fiscal 2019, revenues rose 8.6% year over year to $671 million.

Herman Miller, Inc. Revenue (TTM)

The consensus estimate for earnings is pegged at 79 cents, indicating year-over-year growth of 14.5%. This growth is expected to be driven by manufacturing production leverage, favorable channel and product mix, and profit optimization benefits.

In the fiscal fourth quarter of fiscal 2019, adjusted earnings rose 33.3% from the year-ago quarter to 88 cents.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Herman Miller has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.

Stocks to Consider

Some better-ranked stocks in the broader Zacks Business Services sector are Huron Consulting (HURN - Free Report) , Charles River Associates (CRAI - Free Report) and Nielsen , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings (three to five years) growth rate for Huron, Charles River and Nielsen is 13.5%, 13% and 12%, respectively.

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