Steelcase Inc. (SCS) Reports Disappointing Earnings and Guidance


Shares of Steelcase Inc. (NYSE:SCS) are down considerably this morning after the company reported earnings and guidance which were well below what analysts had been expecting. The news comes at a time when shares were already down from their December highs.

Steelcase Inc. (NYSE:SCS) revenues for the quarter came in at just $787.6 million, down 1.6% from the same quarter last year and well shy of the $812.85 million that analysts had been looking for. Earnings per share came it at $0.30, missing analyst estimates of $0.33 by $0.03. To make matters even worse, the company’s guidance for the quarter ending in February came in at $0.20 to $0.24 per share, also shy of the $0.25 per share that analysts were expecting. The stock has fallen 21.66% or $4.09 following this negative news, hitting $14.79 per share. Approximately 31,311 shares traded hands. SCS shares have risen 4.77% since May 19, 2015 and are currently uptrending. It has outperformed the S&P500 by 7.04%.

The institutional sentiment decreased to 1.04 in Q2 2015. It’s down 0.20, from 1.24 in 2015Q2. The ratio dropped, as 21 funds sold all their Steelcase Inc. shares they owned while 63 reduced their positions. 22 funds bought stakes while 65 increased their total positions. Institutions now own 77.05 million shares which is 6.16% less than the previous share count of 82.11 million in 2015Q2.

Spitfire Capital Llc holds 5.56% of its total portfolio in Steelcase Inc., equating to 702,796 shares. Neumeier Poma Investment Counsel Llc owns 999,245 shares representing 3.48% of their total US portfolio. Moreover, Rk Capital Management Llc has 3.03% of their total portfolio invested in the company, equating to 898,551 shares. The Illinois-based Channing Capital Management Llc has a total of 2.45% of their portfolio invested in the stock. Skyline Asset Management Lp, a Illinois-based fund reported 1.70 million shares owned.

Steelcase Inc. provides an integrated portfolio of furniture settings, user-centered technologies and interior architectural products. The company has a market cap of $1.75 billion. The Company’s furniture portfolio includes panel and freestanding furniture systems and complementary products, such as storage, tables and ergonomic worktools. It has 20.52 P/E ratio. The Company’s seating products include task chairs which are ergonomic, seating that can be used in collaborative or casual settings and specialty seating for specific vertical markets, such as healthcare and education.