Steelcase Inc. (SCS) Stock Pummeled After Issuing 4Q Earnings Guidance
Shares of Steelcase Inc. (SCS) were trading down -3.82 or -20.23 percent to $15.06 per share in Tuesday’s premarket after the company issued guidance for the company’s fourth quarter early this morning. Steelcase reported lower than expected third quarter earnings yesterday after the market close and closed Monday’s regular trading session at $18.88 per share, up +0.55 or +3.00 percent.
Founded in 1912, Grand Rapids, Michigan based Steelcase Inc. began as the Metal Office Furniture Company and has grown into the largest office furniture manufacturer in the world.
Steelcase reported net income of $35.6 million after the market close yesterday or $0.28 per diluted share. Excluding restructuring costs the company had earnings of $0.30 per share in its third quarter. This compares to earnings of $0.29 per share in the same period one year ago. Revenue for the quarter came to $787.6 million compared to $800.0 million in 2014’s third quarter, a decline of -1.5 percent. Analysts expected the company to report earnings of $0.33 per share on revenue of $812.95 million.
Jim Keane, President and Chief Executive Officer of Steelcase said in the company’s press release that, “The Americas improved profitability in the third quarter despite slowing top line growth, and that helped to offset deeper losses than we expected in EMEA, as we continue to work through our major restructuring actions. EMEA orders grew 20 percent organically in the quarter, driven by improved economies in Western Europe and strong demand for some of our new products. Asia Pacific posted record profitability for the quarter compared to a loss in the prior year.”
Early this morning, Steelcase issued an update for its fourth quarter earnings guidance. The company now expects to earn $0.20 to $0.24 for the fourth quarter. This compares to an analyst consensus of $0.26 per share. The company’s guidance for revenue was for $720 million to $745 million versus the analyst consensus forecast of $771.8 million.
In addition to the earnings and guidance, the company’s board of directors declared a cash dividend of $0.1125 per share to be paid on January 15th, 2016, to shareholders of record as of January 7th, 2016.
Steelcase stock reacted significantly on the downside after the earnings report in yesterday’s aftermarket. After the company issued its revised guidance this morning, Steelcase stock sold off even more. The stock will open about a dollar below its previous yearly low of $16.06 per share in this morning’s regular session.
Other News About SCS
Steelcase Releases 2015 Corporate Sustainability Report
Report shows significant progress and key global partnerships.
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Stock has seen considerable hedge fund activity recently.
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