The 10-second takeaway
For the quarter ended Nov. 25 (Q3), Steelcase beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share increased significantly.
Gross margins contracted, operating margins increased, net margins increased.
Steelcase reported revenue of $719 million. The four analysts polled by S&P Capital IQ expected revenue of $705 million. Sales were 7% higher than the prior-year quarter's $673 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.19. The four earnings estimates compiled by S&P Capital IQ predicted $0.19 per share on the same basis. GAAP EPS of $0.17 for Q3 were 21% higher than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 31%, 30 basis points worse than the prior-year quarter. Operating margin was 5.8%, 60 basis points better than the prior-year quarter. Net margin was 3.1%, 40 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $662 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $2.7 billion. The average EPS estimate is $0.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 178 members out of 194 rating the stock outperform, and 16 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Steelcase a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Steelcase is outperform, with an average price target of $11.88.
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