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Investing.com - HNI Corp (NYSE:HNI) shares declined following the announcement of its agreement to acquire Steelcase, Inc. (NYSE:SCS), despite Benchmark maintaining its Buy rating and $60.00 price target on the stock. The company, which boasts a perfect Piotroski Score of 9 according to InvestingPro data, demonstrates strong financial health with a current ratio of 1.46.
The transaction, valued at approximately $2 billion in cash and stock based on the previous day’s closing price, is expected to close by the end of 2025, pending shareholder approvals and regulatory clearances.
Benchmark noted that the initial negative stock reaction, which saw HNI shares drop more than 20% at market open before recovering to close down approximately 10%, "severely misconstrues the opportunities/risks associated with this transaction."
The research firm compared the acquisition to HNI’s purchase of KBAL two years ago, which it described as "a home run for the Company in terms of earnings growth."
Benchmark is maintaining its current price target and estimates until the deal closes, but recommended investors "take advantage of the dislocation between the stock and what we view as the more likely reality for the transaction."
In other recent news, HNI Corporation announced its acquisition of Steelcase Inc . in a transaction valued at approximately $2.2 billion. Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI common stock for each share they own, translating to an implied purchase price of $18.30 per share. This development follows HNI’s strong second-quarter 2025 financial performance, where the company reported earnings per share of $1.11, surpassing the forecast of $0.86. HNI’s revenue also exceeded expectations, coming in at $667.1 million against a predicted $646.42 million. Analysts at Benchmark reiterated a Buy rating for HNI, citing strong quarterly results, with a price target of $60.00. The company’s Workplace Furnishings segment contributed significantly to the revenue outperformance, with orders pulled forward accounting for approximately $15-18 million. Despite these positive financial results, HNI’s stock experienced a slight pre-market decline.
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