Steelcase Hits Estimates in Solid Quarter

Seth Jayson, The Motley Fool
Updated

Steelcase (NYS: SCS) reported earnings on June 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 25 (Q1), Steelcase met expectations on revenues and met expectations 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.

Revenue details
Steelcase logged revenue of $675.2 million. The four analysts polled by S&P Capital IQ wanted to see a top line of $680.3 million on the same basis. GAAP reported sales were 5.6% higher than the prior-year quarter's $639.4 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.13. The four earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.10 for Q1 were 67% higher than the prior-year quarter's $0.06 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.8%, 40 basis points worse than the prior-year quarter. Operating margin was 3.6%, 30 basis points worse than the prior-year quarter. Net margin was 2.0%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $728.2 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $2.88 billion. The average EPS estimate is $0.75.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 180 members out of 195 rating the stock outperform, and 15 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Steelcase a green thumbs-up, and two 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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The article Steelcase Hits Estimates in Solid Quarter originally appeared on Fool.com.

Seth Jaysonhad 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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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