First Union Cuts Herman Miller Estimates
First Union cuts its earnings estimates on Herman Miller (MLHR ).
Analyst John Baugh says Herman Miller's Q3 earnings warning supports his thesis that office-furniture industry business is softening due to a capital-spending slowdown, corporate-profit deterioration and higher energy costs. Baugh cut his $0.45 Q3 EPS estimate to $0.43, and also cut his $0.56 Q4 estimate to $0.55. In addition, Baugh reduced his $2.02 fiscal 2001 (May) EPS estimate to $1.99 and lowered his $2.30 fiscal 2002 estimate to $2.28. Baugh maintained his buy rating on the shares, and kept his $30 12-month price target. He says Herman Miller is still his top pick in the office and contract furniture space.