Shares of HNI Corp. (HNI: Quote) plunged about eleven percent in extended trading hours after the Muscatine, Iowa-based officer furniture maker lowered its third-quarter financial outlook to reflect the soft demand for its furniture amidst the ongoing uncertainty in the economy.
HNI, in a statement, said that order patterns in both the supplies-driven and contract businesses have recently slowed as a result of broader macroeconomic concerns. HNI noted that the extreme summer heat curbed production during the peak season for office furniture.
The company now expects third-quarter earnings to be similar to the prior year period when it was $0.55 per share. The company had previously expected earnings of $0.65 to $0.70 per share for the quarter. Analysts polled by Thomson Reuters currently expect earnings of $0.67 per share for the third-quarter. Analysts' estimates typically exclude special items.
HNI also lowered its third-quarter sales growth guidance to a range of 7 to 10 percent, from the prior estimate of 11 to 14 percent. Analysts currently expect revenues of $567.58 million for the third-quarter.
Chief Executive Stan Askren said, "Economic uncertainty appears to be constraining the near-term growth momentum of office furniture. We remain confident in our strategies and will continue to closely monitor our markets, aggressively manage operating expenses, and invest in long-term growth."
The company is scheduled to release its third quarter earnings on October 17, 2012.
HNI closed Monday's trading at $30.69, down $0.99 or 3.12%, on a volume of 0.2 million shares. The stock further lost $3.22 or 10.49% in after-hours trade.
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by RTT Staff Writer
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