Steelcase Inc. (NYSE:SCS) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Steelcase Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share were the same at $0.13 in the quarter as EPS of $0.13 in the year-earlier quarter.
Revenue: Decreased 1.2% to $667.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Steelcase Inc. reported adjusted EPS income of $0.13 per share. By that measure, the company met the mean analyst estimate of $0.13. It missed the average revenue estimate of $689.93 million.
Quoting Management: “Following twelve consecutive quarters of year-over-year organic revenue growth, we experienced a modest decline in the first quarter,” said James P. Hackett, CEO. “We are not too concerned with this decline, as order growth in the Americas was better than expected, resulting in a strong quarter-end backlog, and customer visits and project activity remain high.”
Key Stats (on next page)…
Revenue decreased 7.53% from $721.4 million in the previous quarter. EPS decreased 68.29% from $0.41 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.28 to a profit $0.27. For the current year, the average estimate has moved down from a profit of $1.01 to a profit of $0.92 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)