Benchmark maintains MillerKnoll stock rating despite strong Q4 results

Published 27/06/2025, 14:46
Benchmark maintains MillerKnoll stock rating despite strong Q4 results

Investing.com - Benchmark maintained its Hold rating on MillerKnoll (NASDAQ:MLKN) stock following the furniture maker’s fourth-quarter fiscal 2025 results released Wednesday. According to InvestingPro analysis, the company appears slightly undervalued at current levels, with a market capitalization of $1.32 billion.

The company reported revenue, EBITDA, and earnings per share significantly above Wall Street expectations for the quarter, with trailing twelve-month revenue reaching $3.67 billion and EBITDA of $365.1 million. Order growth rates increased as customers rushed to place orders ahead of potential tariff-related price increases. InvestingPro data shows the company maintains strong liquidity with a current ratio of 1.58, suggesting healthy operational flexibility.

Benchmark noted that internal sentiment at MillerKnoll continues to improve despite uneven order patterns, with tariff uncertainty representing the primary challenge for both the industry and customers. The company has demonstrated resilience, maintaining dividend payments for 55 consecutive years - one of several key insights available through InvestingPro’s comprehensive analysis tools.

The research firm reduced its earnings estimates for MillerKnoll, lowering its fiscal year 2026 EPS projection by $0.20 and its fiscal 2027 estimate by $0.10, to reflect Retail growth investments and price-cost pressures.

These pressures are partially associated with the pull-forward orders placed ahead of price increases intended to offset inflation and tariffs, according to Benchmark’s analysis of the company’s financial outlook.

In other recent news, MillerKnoll Inc. reported impressive financial results for the fourth quarter of fiscal 2025, exceeding analysts’ expectations. The company achieved an adjusted earnings per share of $0.60, surpassing the projected $0.44. Revenue also exceeded forecasts, reaching $961.8 million compared to the anticipated $913.8 million. These results highlight MillerKnoll’s strong performance, with net sales for the full fiscal year totaling $3.67 billion and a consolidated gross margin of 39.2%. Additionally, the company has been actively expanding its retail footprint by opening new flagship locations.

Looking ahead, MillerKnoll projects net sales between $899 million and $939 million for the first quarter of fiscal 2026, with adjusted EPS guidance ranging from $0.32 to $0.38. The company aims to mitigate tariff-related costs by the third and fourth quarters of fiscal 2026. On the analyst front, there were no recent upgrades or downgrades reported, but the company’s proactive approach to product innovation and market expansion has been noted. These developments reflect MillerKnoll’s strategic focus on innovation and growth in key markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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