Steelcase Earnings: An Early Look

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Earnings season is just about over, with almost all companies already having reported their quarterly results. But there are still a few companies left to report, and Steelcase (NYSE: SCS  ) is about to release its quarterly earnings. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Steelcase makes furniture and other architectural products primarily for business use, as well as electronic whiteboards and other communication-related products for educational, business, and government customers. Yet as businesses have implemented cost-cutting measures, many have had to reduce their spending on non-essential items. Let's take an early look at what's been happening with Steelcase over the past quarter and what we're likely to see in its quarterly report on Wednesday.

Stats on Steelcase

Analyst EPS Estimate


Change From Year-Ago EPS


Revenue Estimate

$709.5 million

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Will Steelcase make investors feel comfortable this quarter?
Analysts have been rock-solid in their calls on Steelcase's earnings lately, having not budged on both most-recent quarter and full-year fiscal 2014 estimates throughout the past several months. The stock, though, has moved favorably, rising nearly 20% since mid-December.

Despite tough economic environment, Steelcase has done a good job of identifying a niche that has been able to keep growing. By targeting large corporate customers with high-end office furniture, Steelcase has drilled down with an active focus on providing what its clients see as necessities while still maintaining its overall profitability.

Still, Steelcase faces strong competition. Cubicle-maker Herman Miller (NASDAQ: MLHR  ) managed to beat earnings estimates in its own quarterly report late last week, sending its shares soaring more than 7%. Herman Miller sports better margins and return-on-equity than Steelcase, although Steelcase has a more secure balance sheet with a lower debt-to-equity ratio than its rival. HNI (NYSE: HNI  ) , on the other hand, missed its earnings estimates back in February.

Overall, though, stock prices throughout the industry have been doing well. As the economy recovers more quickly, especially in the housing industry, furniture companies have seen sales rise. Although office furniture isn't necessarily correlated to housing, investors seem to put Steelcase and its peers in the same category.

In its quarterly report, watch for Steelcase to discuss its Gesture line of chairs, which addresses the results of a recent study it did to see how mobile devices change sitting postures. With business customers seeking to decrease workers' compensation claims, they're often willing to pay up for the latest technology, and if Steelcase can make its case for the need for new furniture to accommodate tablets and smartphones, it could lead to new growth opportunities.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Click here to add Steelcase to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2329103, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:41:26 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,229.57 134.74 0.74%
S&P 500 2,160.94 14.84 0.69%
NASD 5,299.59 42.10 0.80%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 1:26 PM
SCS $14.14 Down -0.10 -0.70%
Steelcase CAPS Rating: *****
HNI $39.96 Up +0.33 +0.83%
HNI CAPS Rating: No stars
MLHR $29.03 Down -0.17 -0.58%
Herman Miller CAPS Rating: ***