Steelcase (NYSE: SCS) reported Q2 EPS of $0.55, $0.18 better than the analyst estimate of $0.37. Revenue for the quarter came in at $818.8 million versus the consensus estimate of $782.6 million.

GUIDANCE:

Steelcase sees Q3 2021 EPS of $0.12-$0.18, versus the consensus of $0.18. Steelcase sees Q3 2021 revenue of $690-725 million, versus the consensus of $703.9 million.

• At the end of the second quarter, the company’s backlog of customer orders was $577 million, or 8 percent lower than the prior year. Going into the third quarter, orders declined an average of 38 percent during the first three weeks of September compared to the prior year, including declines of 41 percent in the Americas, 27 percent in EMEA, and 37 percent in the Other category. As a result, the company expects third quarter fiscal 2021 revenue to be in the range of $690 to $725 million. The company reported revenue of $955.2 million in the third quarter of fiscal 2020. Adjusted for the divestiture of PolyVision and currency translation effects, the projected revenue range translates to an expected organic decline of 24 to 27 percent compared to the third quarter of fiscal 2020. The year-over-year comparison also reflects the impact of the timing of the U.S. Thanksgiving holiday which will fall in the third quarter of fiscal 2021 compared to the fourth quarter of fiscal 2020.
• The company expects to report diluted earnings per share of between $0.07 to $0.13 for the third quarter of fiscal 2021. This estimate includes $0.05 per share of estimated restructuring costs, net of tax related to the previously announced actions. Adjusted for the estimated restructuring costs, the company expects to report adjusted earnings of between $0.12 to $0.18 per share. The estimate also reflects: (1) projected operating expenses of between $180 million to $185 million, (2) projected interest expense, net of investment income and other income, net of approximately $5 million and (3) an expected effective tax rate of approximately 25 percent (or approximately 30 percent when adjusted for the estimated restructuring costs and the related tax benefit). Steelcase reported diluted earnings per share of $0.46 in the third quarter of fiscal 2020.
• “As the number of COVID cases declined in Asia Pacific and EMEA, we saw a strong return to the office in those regions as companies utilize the workplace to drive higher productivity, increase collaboration and promote their culture," said Jim Keane. “As progress is being made in the U.S. relative to the pandemic, we expect to see momentum build to bring employees back to work which will drive improved demand for our solutions to provide a better experience.”

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