Why HNI Corp Stock Plummeted Tuesday

Shares of office furniture and hearth products company HNI (NYSE: HNI) were slammed on Tuesday. Shares fell as much as 26.3% in the morning but are down about 19.7% at 12:10 p.m. EDT.

The stock's decline follows the company's third-quarter earnings release. While HNI reported higher-than-expected revenue and non-GAAP EPS, management said it expected profitability to take a hit in its fourth quarter as it works through "two major challenges," including an increased investment in areas with lower near-term sales and operational transformation initiatives that have proved to be more difficult than expected.

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Source: Fool.com