Steelcase Inc. (SCS) shares took a tumble in after-hours trading on Wednesday following the release of the company’s second-quarter financial report. While Steelcase exceeded earnings expectations, the revenue figure fell short of analyst estimates. This led to a significant dip in the company’s stock price.
Here’s a closer look at the details:
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Earnings:
Steelcase reported quarterly earnings of 39 cents per share, surpassing the analyst consensus estimate of 37 cents. This positive news suggests that the company is managing its costs effectively and generating profits.*
Revenue:
The company’s quarterly revenue came in at $855.8 million, slightly below the analyst consensus estimate of $864.1 million. This indicates that while the company is seeing some growth, it may be facing challenges in expanding its market reach.*
Regional Performance:
Steelcase experienced growth in the Americas, primarily driven by increased demand from large corporate, education, and government clients. However, the international business saw a decline, largely attributed to continued weakness in the Chinese market.*
Outlook:
Steelcase is projecting third-quarter revenue in the range of $785 million to $810 million, and adjusted earnings between 21 cents and 25 cents per share. This indicates the company is expecting continued growth but at a slower pace.The stock market reacted negatively to the mixed earnings report, with Steelcase shares dropping by 10.21% after hours, closing at $12.67 at the time of publication. Investors are likely weighing the company’s strong earnings performance against the missed revenue target and the challenges in the international market.
