Steelcase beats by $0.03, beats on revs; guides Q3 EPS below consensus, revs in-line
- Reports Q2 (Aug) earnings of $0.26 per share, excluding non-recurring items*, $0.03 better than the Capital IQ Consensus of $0.23; revenues rose 2.3% year/year to $775.6 mln vs the $759.83 mln Capital IQ Consensus; while order growth was flat. The Americas revenue and orders declined less than 1 percent compared to the prior year, as continued growth in the company's new products and solutions was offset by declines in traditional furniture applications. Demand from large customers remained subdued, but the rate of decline was lower than the first quarter. EMEA revenue increased 5 percent, or 4 percent on an organic basis, and orders grew modestly, reflecting mixed results across the region. The Other category posted revenue growth of 20 percent, or 19 percent on an organic basis, driven by continued strength in Asia Pacific, and order growth was 3 percent.
- *"The property gain and discrete tax benefit recorded in the second quarter had the effect of increasing earnings per share by approximately $0.05 after consideration of the related variable compensation expense."
- Co issues guidancefor Q3, sees EPS of $0.21-0.25, excluding non-recurring items, vs. $0.28 Capital IQ Consensus Estimate; sees Q3 revs of $785-810 mln vs. $800.63 mln Capital IQ Consensus Estimate.
- "We see multiple signs that point to improved growth in the coming quarters," said Jim Keane. "In addition to the significant number of new product introductions in fiscal 2018, we are expanding our market by recently launching smart and connected products that enhance workplace strategies and new relationships to expand our response to the increased demand for ancillary solutions. Increasing the breadth of our offerings is critical to support our customers as they navigate the growing importance of enabling creativity and innovation, increasing employee engagement and augmenting performance in the workplace."
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