HNI stock rises as Benchmark reiterates Buy rating on strong Q2 results

Published 25/07/2025, 16:22
HNI stock rises as Benchmark reiterates Buy rating on strong Q2 results

Investing.com - HNI Corp (NYSE:HNI) stock gained after Benchmark reiterated its Buy rating and $60.00 price target following the company’s second-quarter earnings report. According to InvestingPro data, the company maintains a "GOOD" financial health score, with liquid assets exceeding short-term obligations.

The office furniture manufacturer reported second-quarter 2025 results on Thursday that exceeded consensus estimates across revenue, EBITDA, and earnings per share metrics. The strong performance was partially attributed to modest pull-forward orders in the Workplace Furnishings segment, which accounted for approximately $15-18 million of the topline outperformance.

Internal initiatives focused on network optimization, RBP penetration, and synergy realization drove margin improvements during the quarter. Gross margins improved by approximately 90 basis points, while operating margins expanded by roughly 200 basis points.

Management expressed improved visibility into the second half of 2025, citing small and medium-sized business customers returning from an extended pause and contract customers resuming normal business activities. This improved outlook led to a slight upward revision in the company’s previously communicated EPS growth guidance.

Benchmark raised its earnings per share estimates for fiscal year 2025 and 2026 by $0.10 and $0.15 to $3.55 and $4.00, respectively, while maintaining its $60 price target on HNI stock.

In other recent news, HNI Corp reported strong fiscal Q2 2025 results, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $1.11, surpassing the forecasted $0.86, which represents a notable 29.07% earnings surprise. Additionally, HNI Corp outperformed revenue estimates, reporting $667.1 million compared to the anticipated $646.42 million. Despite this positive financial performance, the company’s stock experienced a pre-market decline of 0.95%, trading at $52 per share. These developments highlight HNI Corp’s ability to deliver better-than-expected earnings and revenue results.

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