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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<div><div><div><div><ul style="list-style-type: disc;"><li><p>As noted earlier, MillerKnoll’s 3QFY24 EPS beat expectations but revenue missed widely. 4QFY24 guidance was also below pre-report estimates.</p></li><li><p>With the misses, the stock gapped down by the mid-teens (~$5.00), closing at $24.76, thereby truncating and halting its recent rebound.</p></li><li><p>Y/Y revenue comparisons were negative in all three segments: Americas Contract (AC) at -9% to $441 million, International Contract &amp; Specialty (IC&amp;S) at -10.4% to $217 million, and Global Retail (GR) at -17% to $214 million. </p></li></ul></div></div></div></div>

As noted earlier, MillerKnoll’s 3QFY24 EPS beat expectations but revenue missed widely. 4QFY24 guidance was also below pre-report estimates.With the misses, the stock gapped down by the mid-teens (~$5.00), closing at $24.76, thereby truncating and halting its recent rebound.Y/Y revenue comparisons were negative in all three segments: Americas Contract (AC) at -9% to $441 million, International Contract &amp; Specialty (IC&amp;S) at -10.4% to $217 million, and Global Retail (GR) at -17% to $214 million. 

MillerKnoll, Inc - 3QFY24 EPS Beats; Revenue Misses

<ul><li>MillerKnoll reported 3QFY24 non-GAAP (adjusted) EPS of $0.45, beating our $0.43 estimate and consensus of $0.44.</li><li>Consolidated sales were $872 million, missing our $908 million estimate by $36 million and likewise missing consensus by ~$37 million.</li><li>Gross margin helped the Y/Y comparison, rising 455 bps versus 3QFY23.</li></ul>

MillerKnoll reported 3QFY24 non-GAAP (adjusted) EPS of $0.45, beating our $0.43 estimate and consensus of $0.44.Consolidated sales were $872 million, missing our $908 million estimate by $36 million and likewise missing consensus by ~$37 million.Gross margin helped the Y/Y comparison, rising 455 bps versus 3QFY23.

<ul><li>Following a strong margin performance in 2Q, we are raising our 3QFY24 EPS estimate to $0.43, just below the midpoint of guidance, from $0.38.</li><li>The increase is the result of higher margin assumptions on a lower revenue forecast.</li><li>We are also reviewing and lowering our revenue assumptions for the remainder of FY24 and FY25. </li></ul>

Following a strong margin performance in 2Q, we are raising our 3QFY24 EPS estimate to $0.43, just below the midpoint of guidance, from $0.38.The increase is the result of higher margin assumptions on a lower revenue forecast.We are also reviewing and lowering our revenue assumptions for the remainder of FY24 and FY25. 

MillerKnoll, Inc. - Raising 3Q Estimate; Seeing Strength in Retail

<ul><li>After market close on December 20, MillerKnoll reported 2QFY24 adjusted EPS of $0.59, ahead of our estimate of $0.55 and the consensus mean of $0.54.</li><li>Margins were better than expected, while revenue of $949.5 million came in at the low end of guidance.</li><li>Sales in the Americas segment disappointed relative to our expectations.</li></ul>

After market close on December 20, MillerKnoll reported 2QFY24 adjusted EPS of $0.59, ahead of our estimate of $0.55 and the consensus mean of $0.54.Margins were better than expected, while revenue of $949.5 million came in at the low end of guidance.Sales in the Americas segment disappointed relative to our expectations.

MillerKnoll, Inc. - 2QFY24 Results Deliver Strong Margins; Orders Challenged

<ul><li>MillerKnoll reports 2QFY24 earnings after market close on Wednesday, December 20, and will host its management conference call at 5:00 pm ET.</li><li>WTR is modeling EPS of $0.55, the midpoint of guidance, on revenue of $987 million. Consensus is $0.54, with an estimate range of $0.52-0.56.</li><li>Order trends. We are modeling orders in the Americas at +13.9% versus a poor year-ago quarter of -17.3%.</li></ul>

MillerKnoll reports 2QFY24 earnings after market close on Wednesday, December 20, and will host its management conference call at 5:00 pm ET.WTR is modeling EPS of $0.55, the midpoint of guidance, on revenue of $987 million. Consensus is $0.54, with an estimate range of $0.52-0.56.Order trends. We are modeling orders in the Americas at +13.9% versus a poor year-ago quarter of -17.3%.

MillerKnoll, Inc. - 2QFY24 Earnings After Close

United States

MillerKnoll, Inc. researches, designs, manufactures, and distributes interior office furnishings, furniture systems, products, and services. The Company markets its products to companies, organizations, and individuals worldwide.

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MillerKnoll (MLKN US)

MillerKnoll, Inc - 3QFY24 EPS Beats; Revenue Misses

As noted earlier, MillerKnoll’s 3QFY24 EPS beat expectations but revenue missed widely. 4QFY24 guidance was also below pre-report estimates.

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MillerKnoll, Inc. - 3QFY24 Earnings

MillerKnoll reported 3QFY24 non-GAAP (adjusted) EPS of $0.45, beating our $0.43 estimate and consensus of $0.44. Consolidated sales were $872 million

Water Tower Research

MillerKnoll, Inc. - Raising 3Q Estimate; Seeing Strength in Retail

Following a strong margin performance in 2Q, we are raising our 3QFY24 EPS estimate to $0.43, just below the midpoint of guidance, from $0.38.

Water Tower Research

MillerKnoll, Inc. - 2QFY24 Results Deliver Strong Margins; Orders Challenged

After market close on December 20, MillerKnoll reported 2QFY24 adjusted EPS of $0.59, ahead of our estimate of $0.55 and the consensus mean of $0.54.

Water Tower Research

MillerKnoll, Inc. - 2QFY24 Earnings After Close

MillerKnoll reports 2QFY24 earnings after market close on Wednesday, December 20, and will host its management conference call at 5:00 pm ET.

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