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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.
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Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.