Steelcase Misses Where It Counts
Steelcase (NYS: SCS) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 24 (Q4), Steelcase met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins dropped, net margins expanded.
Steelcase chalked up revenue of $690.2 million. The four analysts polled by S&P Capital IQ expected to see a top line of $689.4 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $622.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.14. The four earnings estimates compiled by S&P Capital IQ forecast $0.16 per share on the same basis. GAAP EPS of $0.11 for Q4 were 38% higher than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.0%, 10 basis points worse than the prior-year quarter. Operating margin was 3.3%, 100 basis points worse than the prior-year quarter. Net margin was 2.2%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $664.6 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $2.87 billion. The average EPS estimate is $0.84.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 179 members out of 193 rating the stock outperform, and 14 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Steelcase a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Steelcase is outperform, with an average price target of $13.17.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.