MUSCATINE, Iowa - HNI Corporation (NYSE: NYSE:HNI), a manufacturer of workplace furnishings and residential building products, has expanded its Board of Directors with the election of David Roberts, the current President and CEO of Verra Mobility (NASDAQ:VRRM) Corporation (NASDAQ: VRRM). Roberts, who has been at the helm of the smart mobility technology company since 2018, joined the board effective from the announcement and will serve on the Public Policy and Corporate Governance Committee.
Roberts' career spans over 30 years, with a background that includes technology, innovation, finance, entrepreneurship, strategy, and general management. His experience is expected to complement the existing board's expertise as HNI continues to implement strategies aimed at long-term profitable growth.
Jeff Lorenger, Chairman, President, and CEO of HNI, expressed enthusiasm for Roberts' addition to the board, citing his "deep technology and innovation experience" and "impressive strategic business management skills." Roberts also conveyed his excitement about joining HNI's board, acknowledging the company's recent momentum and expressing eagerness to contribute to its growth journey.
With Roberts' election, HNI's Board of Directors now consists of eleven members, including ten independent outside directors and the CEO of the corporation. This move is part of HNI's ongoing efforts to enhance its leadership structure and governance as it navigates the evolving marketplace.
HNI Corporation has a history stretching over 75 years and operates under two segments. The Workplace Furnishings segment is recognized as a global designer and provider of commercial furnishings, while the Residential Building Products segment is a leading manufacturer and marketer of hearth products in the nation.
This board appointment is informed by a press release statement from HNI Corporation and is intended to provide insights into the company's strategic direction and governance.
In other recent news, HNI Corporation has been making strategic moves to optimize its operational footprint. The company plans to close its manufacturing plant in Hickory, North Carolina, by the first half of 2025, a decision expected to save approximately $11 million annually. The Benchmark analyst firm has maintained a Buy rating on HNI Corp and raised the stock target from $54 to $57 in light of these developments.
The closure of the plant is part of HNI's ongoing integration of Kimball International Inc. and is projected to double the original synergies from the acquisition to $50 million. The company's earnings per share (EPS) estimate for 2025 has been revised upwards to $3.60 by Benchmark, driven by factors within the company's control.
HNI Corp's first-quarter fiscal 2024 earnings have nearly tripled from the previous year, despite an 8% drop in organic revenue. The company attributes this performance to its workplace furnishings profit transformation plan and the strategic acquisition of Kimball International. These are the recent developments that have caught the attention of investors and financial analysts alike.
InvestingPro Insights
As HNI Corporation welcomes David Roberts to its Board of Directors, investors are looking closely at the company's financial health and future prospects. According to InvestingPro data, HNI has demonstrated robust financial performance, with a notable revenue growth of 12.09% over the last twelve months as of Q1 2024. This growth is further highlighted by an impressive quarterly revenue growth of 22.73% in Q1 2024, signaling strong operational momentum.
The company's commitment to shareholder returns is evident with a consistent dividend track record. HNI has raised its dividend for 13 consecutive years, and it has maintained dividend payments for an impressive 54 consecutive years. The dividend yield as of the latest data stands at 2.95%, paired with a dividend growth of 3.12% over the last twelve months as of Q1 2024.
Investors may also take interest in HNI's market valuation. The company is currently trading at a P/E ratio of 31.13, which some may consider high; however, when adjusted for the last twelve months as of Q1 2024, the P/E ratio is more favorable at 15.9. This could indicate that the company's earnings potential is being recognized by the market.
Two InvestingPro Tips that may be particularly relevant for those keeping an eye on HNI include the expectation of net income growth this year and the prediction that the company will remain profitable, as it has been over the last twelve months. These insights suggest a positive outlook for HNI's financial performance in the near term.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/HNI. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore a total of 7 tips that further detail HNI's investment potential.
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