Steelcase Inc. (NYSE:SCS) shares fell to $12.60 in after-hours trading on Wednesday as investors tuned in to weaker guidance for Q2. The company has a market cap of $1.70 billion at 87.76 million shares outstanding. Shares have been trading in a 52-week range of $11.67 to $20.37 so prices are close to support.
In its latest earnings release, Steelcase Inc reported earnings per share of $0.18, which is $0.02 higher than the consensus estimate at $0.16. This represents an improvement from the $0.17 earnings per share in the same quarter a year ago. Revenue for the quarter came in at $718.8 million versus the consensus estimate of $702.37 million, up 1.9% from its revenue from the same quarter last year.
Components of their earnings report showed that Americas segment saw almost flat sales growth of 0.1% to $520.4 million while Europe, Middle East and Africa segment sales increased 4.5% to $125.3 million. The company was able to record profits of $19.4 million, slightly lower compared to $20 million in the same period last year.
However, Steelcase Inc projected that earnings per share could come in at $0.29 to $0.33 in the same quarter next year, lower than the consensus at $0.37. The company projects Q2 2017 revenue of $770 – $795 million, versus the consensus of $827.3 million.
This downbeat outlook is based on falling orders, which was blamed on the persistent weakness in the energy sector and weaker demand from the UK. In addition, expenses and disruptions related to the revamp of its European operations could carry on for much longer.
Steelcase Inc provides an integrated portfolio of furniture settings, user-centered technologies and interior architectural products. The company’s portfolio includes panel-based and freestanding furniture systems and complementary products, such as storage, tables and ergonomic worktools. Its seating products include task chairs, which are ergonomic seating that can be used in collaborative or casual settings and specialty seating for specific vertical markets, such as healthcare and education.
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