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Monday, December 21, 2015

Steelcase (SCS) reported earnings on Mon 21 Dec 2015 (a/h)

** charts before earnings **







 ** charts after earnings **







Steelcase misses Q3 estimates; guides Q4 below estimates (limited coverage) :
  • Reports Q3 (Nov) earnings of $0.30 per share, $0.03 worse than the two analyst estimate of $0.33; revenues fell 1.5% year/year to $787.6 mln vs the $812.85 mln two analyst estimate. Organic rev growth over the prior year was 1% after adjusting for ~$29.9 mln of unfavorable currency translation effects and the impact of a small acquisition, net of divestitures.
    • The Americas and Other category posted organic revenue growth of 3% and 9%, respectively, while EMEA posted an organic decline of 8%. The organic decline in EMEA in the current quarter compares to 14% organic revenue growth in the prior year, which was primarily driven by a number of project orders received in the first half of fiscal 2015 for which revenue was recognized in the third and fourth quarters.
    • EMEA orders grew 20% on an organic basis in the third quarter of fiscal 2016 and included requests for extended delivery dates and orders for certain products with extended lead times.
    • In the Americas, third quarter orders were down 1% on an organic basis compared to the prior year.
  • Co issues downside guidance for Q4, sees EPS of $0.20-0.24 vs. $0.26 two analyst estimate; sees Q4 revs of $720-745 vs. $771.85 mln two analyst estimate. which reflects an expected range of an organic revenue decline of 2% to organic revenue growth of 1% compared to the prior year. 

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