– HNI’s traditional EPS is materially distorted by their accounting for operating leases and R&D

– After making appropriate UAFRS adjustments, it is apparent that while EPS’ is greater than as-reported EPS, EPS’ is expected to decline next year, not grow significantly like as-reported metrics suggest

– HNI is also trading at a premium to other furnishing peers with greater growth prospects, indicating the markets have yet to recognize the firm’s poor outlook, and equity underperformance is likely warranted

http://www.valens-research.com/uniform-accounting-highlights-hni-likely-see-declines-uafrs-eps-going-forward-trading-premium-peers-better-outlook/?utm_source=rs

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