Herman Miller shares closed Thursday trading at $34.55 and were approximately 0.72% up during Friday’s pre-market. The company’s market capitalization is around $1.52 billion.
Herman Miller Inc (NASDAQ: MLHR) shares jumped over 33% on Thursday, September 17, after the company reported better than anticipated earnings. Besides, the company has now reinstated its dividends as it projects its business to boom with the recovering economy.
Herman Miller shares closed Thursday trading at $34.55 and were approximately 0.72% up during Friday’s pre-market.
Herman Miller is an American company that produces office furniture and also equipment, besides home furnishings. The company experienced its worst part of the year when its core business was almost shut down due to the onset of the coronavirus pandemic.
During the first half of the year, its shares experienced a sharp nosedive. Notably, the shares are still recovering from the March market crash.
According to metrics provided by Marketwatch, Herman Miller shares are down around 17% year to date through Thursday. However, after consolidating in the past three months, Herman Miller shares have broken out and jumped approximately 42.18%.
Apparently, the highest gains have been noted during the past five days, as they have jumped approximately 55.98%.
The company has a market capitalization of around $1.52 billion at the time of publication. In addition, it has 58.87 million outstanding shares, whereby their 52 weeks range between $14.39 and $49.87.
Herman Miller Earnings Report That Pushes Shares Higher
According to its earnings report, the company reported fiscal first-quarter earnings per share of $1.24 that blew Wall Street expectations of 26 cents per share, according to Refinitiv.
Notably, the company managed $626.8 million in revenue, topping estimates of $524.8 million. Its organic sales grew 13% last quarter.
The increase in organic sales can be largely attributed to the fact that there is an increase in demand for its products especially as more people settle for home office working.
“This has represented a real opportunity for us and one we’re excited about because the distribution of the workforce has been happening for a very long time prior to COVID,” Herman Miller CEO and President Andrea Owen said on the earnings call. “We are here to help people sort of revamp the spaces they do have that are office-oriented as well as support the workers that are working from home and now schooling from home. We think we’re even more set up for a distributed workforce of the future than we ever have been before.”
With the 2020 fiscal year almost coming to an end, most analysts are projecting that the worst may be over and the market will continue rising. Especially supported by the fact that several companies are now offering their investors dividends after months of dry spell.
“The rebound of dividend and buyback sentiment together with the stabilization of dividend cut announcements suggest the worst may be over and a sharp drop in cash returns in 2H20 is unlikely,” Evercore ISI strategist Dennis DeBusschere wrote in a recent client note.
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