MillerKnoll to Report Q4 Earnings: What's in Store?

MillerKnoll, Inc. MLKN is set to release its fourth-quarter fiscal 2024 results on Jun 26, 2024, after market close.
In the last reported quarter, the company's earnings topped the Zacks Consensus Estimate by 2.3% but decreased 16.7% year over year. However, net sales missed the consensus mark by 4.2% and declined 11.4% year over year.
MillerKnoll's earnings topped the consensus mark in each of the last four quarters, the average surprise being 24.3%.

Trend in Estimate Revision

The Zacks Consensus Estimate for the company's fiscal fourth-quarter earnings per share has remained unchanged at 53 cents over the past 60 days. The current estimate suggests 29.3% growth from the year-ago quarter's reported EPS value of 41 cents.
The consensus mark for net sales is $899.1 million, suggesting a 6% year-over-year decrease.

Factors to Note

MillerKnoll's net sales are expected to have declined year over year in the fiscal fourth 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 affected its top line.
For the fiscal fourth quarter, the company expects net sales between $880 million and $920 million, down from $956.7 million on a year-over-year basis.
Nonetheless, the realization of price optimization strategies, improved freight, distribution and inventory management and benefits from its ongoing synergy efforts are likely to have driven margins. MLKN projects an adjusted gross margin within the 38.1-39.1% range for the quarter, up from 37% from the previous year.
Operating expenses are expected to be in the range of $274-$284 million, down from $343.1 million reported a year ago. The company expects diluted adjusted EPS in the range of 49-57 cents for the quarter, up 29% 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%.
Zacks Rank: MillerKnoll currently carries a Zacks Rank #3.

Stocks to Consider

Some better-ranked stocks from the Zacks Furniture industry:
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The consensus estimate for LZB's fiscal 2025 EPS indicates an improvement of 5% from the prior-year levels. The estimated figure moved up to $3.13 from $2.80 over the past seven days.
SharkNinja Inc. SN presently flaunts a Zacks Rank #1. It has a trailing three-quarter earnings surprise of 12.2%, on average.
The consensus estimate for SN's 2024 EPS indicates an improvement of 18.6% from the prior-year levels. The estimated figure moved up to $3.82 from $3.54 over the past 60 days.
Virco Manufacturing Corporation VIRC presently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 74.9%, on average.
The consensus estimate for VIRC's fiscal 2025 EPS indicates an improvement of 38.8% from the prior-year levels. The estimated figure moved up to $1.86 from $1.60 over the past 30 days.

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