Designer and manufacturer of office products Steelcase Inc. SCS reported earnings after the market close on Monday, and results were not what investors were looking for. The company reported EPS of $.30 per share, which was $0.03 lower than the Zacks Consensus Estimate of $0.33 per share, representing a 9.09% negative earnings surprise.
Steelcase Inc. also reported that revenues slid 1.6% year-over-year, mainly due to a 20.6% drop in revenue from Europe, the Middle East, and Africa, despite revenues in the Americas increasing by 3.6%. The company also set its fourth quarter earnings estimate at $.20-$.24 per share. The Zacks Consensus Estimate is currently set at $.26 per share.
Steelcase shares have been relatively flat over the past several months on growth concerns, and yesterday's third quarter results and a lowering of guidance for its next quarter did not help to ease concerns. The reinforced worries were very clear today as Steelcase saw its stock close the day nearly 23% lower, down to $14.55 a share.
Steelcase is currently a Zacks Rank #3 (Hold), but that ranking is subject to change after the poor earnings report, and especially after the company's fourth quarter guidance was lowered. It will be interesting to see how the management of Steelcase counters its recent below-expectations performance as a company, and how their actions, or lack thereof, affects SCS's stock price.
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