Why Steelcase Shares Slipped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Steelcase (NYSE: SCS  ) were getting hammered today, sinking as much as 11% after its quarterly earnings report fell short.

So what: The maker of furniture and interior building components got dinged by its European segment, a pattern we've seen in durable goods over the last few quarters. Adjusted earnings came in at $0.13, in line with estimates; however, revenue missed the mark, falling 1%, to $667.1 million, below estimates of $689.9 million. Management blamed slower demand in France and Northern Europe, and guided EPS for the current quarter to between $0.22 and $0.26, while analysts had predicted $0.26.

Now what: Steelcase shares weren't helped by today's broad market decline, either, which saw the S&P 500 drop 2.5%, but the stock recovered to end just 7.2% down. Considering the weakness in Europe, and the fact that slow growth, overall, has been an industry-wide trend, Steelcase should be able bounce back from today's miss. Sales in the Americas grew faster than expected last quarter, indicating that parts of the company remain strong.

Want more on Steelcase? Add the company to your Watchlist by clicking right here.  


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