Steelcase Inc. (NYSE:SCS) has helped create great experiences for the world's leading organizations, across industries for over a 100 years. The Company offers a comprehensive portfolio of furniture, architecture and technology products and services which are designed to open human promise and support social, economic and environmental sustainability.
On Monday, the company announced its third quarter financial results. Total revenue decreased 1.55% to $787.6 million compared with last year. Net income jumped up 200% to $35.6 million from $11.8 million last year. Diluted earnings per share was $0.28 which increased 211% compared with last year. However, stock price tumbled 20.95% to $14.93 on Tuesday morning. The revenue and diluted earnings per share disappointed analysts’ expectations.
"The Americas improved profitability in the third quarter despite slowing top line growth, and that helped to offset deeper losses than we expected in EMEA, as we continue to work through our major restructuring actions," said Jim Keane, president and CEO. "EMEA orders grew 20 percent organically in the quarter, driven by improved economies in Western Europe and strong demand for some of our new products. Asia Pacific posted record profitability for the quarter compared to a loss in the prior year."
For next quarter guidance, Steelcase expected diluted earnings per share range between $0.2 to $0.24 which decreased from consensus estimates of $0.25. Total revenue forecast decreased from $771.75 million to range between $720 to $745 million.
“We remain optimistic about our new products and longer-term demand driven by the need for companies to modernize their workspaces," said Jim Keane. "In addition, our sales strategies are gaining traction in EMEA: our win rates with leading organizations are improving, newer products are growing faster than anticipated and excitement continues to build regarding the Munich Learning and Innovation Center."