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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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