Steelcase (NYSE: SCS) reported Q1 EPS of ($0.24), $0.07 better than the analyst estimate of ($0.31). Revenue for the quarter came in at $566.6 million versus the consensus estimate of $554.8 million.

GUIDANCE:

Steelcase sees Q2 2021 EPS of $0.25-$0.30, versus the consensus of $0.22. Steelcase sees Q2 2021 revenue of $750-780 million, versus the consensus of $704 million.

• At the end of the first quarter, the company’s backlog of customer orders was approximately $624 million, which was 20 percent lower than the prior year, but approximately $175 million, or 39 percent higher than at the end of the fourth quarter. As a result, the company expects second quarter fiscal 2022 revenue to be in the range of $750 to $780 million. The company reported revenue of $818.8 million in the second quarter of fiscal 2021 which benefited from a strong beginning backlog as a result of the government mandated shutdowns in the first quarter of fiscal 2021. Adjusted for an acquisition and currency translation effects, the projected revenue translates to an expected organic decline of 8 to 11 percent compared to the second quarter of fiscal 2021.
• The company expects to report earnings per share of between $0.25 to $0.30 for the second quarter of fiscal 2022. The estimate includes: (1) projected inflation, net of pricing benefits, of approximately $14 million as compared to the prior year, (2) projected operating expenses of between $180 to $185 million, net of a $15 million gain from an expected land sale, (3) projected interest expense, investment income and other income, net, of approximately $4 million, and (4) a projected effective tax rate of approximately 28 percent. Steelcase reported earnings per share of $0.47, and adjusted earnings per share of $0.55, in the second quarter of fiscal 2021.
• For the second half of fiscal 2022, the company continues to target double-digit revenue growth compared to fiscal 2021, due to the broad economic recovery expected in most markets and the ongoing return of workers to offices around the world.
• "Our outlook for the second quarter projects strong sequential revenue growth, and we expect to be profitable for the first half of the fiscal year," said Jim Keane. "We have already been seeing strong increases in customer visits, mock-ups and requests for proposals as customers restart previously planned projects. As their employees return to offices this summer, many other customers are assessing how they need to invest in their facilities to more fully support hybrid workplace strategies. We expect these investments will help support strong growth in the second half of our fiscal year."

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