The 10-second takeaway
For the quarter ended Feb. 24 (Q4), Steelcase met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins dropped, net margins expanded.
Steelcase chalked up revenue of $690.2 million. The four analysts polled by S&P Capital IQ expected to see a top line of $689.4 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $622.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.14. The four earnings estimates compiled by S&P Capital IQ forecast $0.16 per share on the same basis. GAAP EPS of $0.11 for Q4 were 38% higher than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.0%, 10 basis points worse than the prior-year quarter. Operating margin was 3.3%, 100 basis points worse than the prior-year quarter. Net margin was 2.2%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $664.6 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $2.87 billion. The average EPS estimate is $0.84.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 179 members out of 193 rating the stock outperform, and 14 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Steelcase a green thumbs-up, and three 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 $13.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.