Steelcase (SCS) Reports Q3 EPS of $0.36, Revenues Beat; Offers Q4 Revenue Mid-Point Guidance Above Consensus

Steelcase (NYSE: SCS) reported Q3 EPS of $0.36, versus $0.22 reported last year. Revenue for the quarter came in at $901 million versus the consensus estimate of $898.17 million.

"The successful implementation of our growth strategies to broaden our product offering contributed to another quarter of strong organic revenue growth, which continued to outpace recent industry trends in the U.S. and many other markets,” said Jim Keane, president and CEO. “The 41 percent improvement in earnings per share in the third quarter was even stronger than the 32 percent growth in the second quarter and was driven by our target to expand earnings through revenue growth while continuing to drive fitness across our business model."

"In the Americas, we achieved strong operating leverage from the $68 million of organic revenue growth even though revenue from our recent pricing actions was offset by inflation," said Dave Sylvester, senior vice president and CFO. "In EMEA, we were pleased to report year-over-year improvement in our operating results again this quarter, despite political and economic uncertainty in the U.K. and France, which may have negatively impacted demand patterns across the region. Our profitability was also negatively impacted by unfavorable shifts in business mix and some operational inefficiencies associated with the higher volume in the quarter."

Outlook

“We remain focused on growing revenue at a higher rate than industry trends through our industry-leading innovation and global scale,” said Jim Keane. “Our fiscal 2019 earnings are on track to represent one of our strongest years in more than a decade, and we are targeting to grow revenue and earnings again in fiscal 2020, consistent with the mid-term targets we shared at our Investor Day in October.”

GUIDANCE:

Steelcase sees Q4 2019 EPS of $0.24-$0.28. Steelcase sees Q4 2019 revenue of $860-885 million, versus the consensus of $865.63 million.

For earnings history and earnings-related data on Steelcase (SCS) click here.

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