MillerKnoll, Inc. (MLKN) had a pretty good Wednesday evening. The furniture maker released second-quarter results that beat Wall Street's expectations on both the top and bottom lines, and investors rewarded the performance by pushing shares higher in after-hours trading.
The Numbers That Matter
MillerKnoll reported adjusted earnings of 43 cents per share for the quarter, edging past the analyst consensus of 41 cents. Revenue came in at $955.2 million, comfortably ahead of the $943.13 million that the Street was expecting.
Now, revenue was actually down 1.6% from last year (or 2.5% on an organic basis), which might seem like a red flag. But here's the interesting part: orders jumped 5.5% year-over-year to $972.5 million, with growth showing up in every single business segment. That's the kind of forward-looking metric that gets investors excited, because orders today become revenue tomorrow.
The company also managed to expand its gross margin by 20 basis points, which suggests it's doing a decent job managing costs even as sales declined modestly.
"Our second quarter results reflect the disciplined execution of our strategic priorities and the strength of MillerKnoll's brand collective," said CEO Andi Owen.
What's Next
MillerKnoll guided third-quarter adjusted earnings between 42 cents and 48 cents per share, with the midpoint comfortably above the 41-cent consensus estimate. The company expects revenue between $923 million and $963 million, also ahead of the $915.87 million analysts had penciled in.
Shares climbed 5.82% to $18.55 in extended trading following the report, suggesting investors like what they're seeing in both the results and the outlook.
