– 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


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