Financial Data and Key Metrics Changes - In Q3, the company achieved 3% organic revenue growth and adjusted earnings of $0.30 per share, exceeding initial targets for the fiscal year [8][28] - The Americas segment reported 7% organic revenue growth and an adjusted operating margin of 8.1%, marking the fifth consecutive quarter of year-over-year order growth [9][35] - The International segment experienced an 8% decline in revenue, attributed to lower volume and competitive discounting [28][30] Business Line Data and Key Metrics Changes - The Americas segment's strong performance was driven by favorable shipment timing and backlog, while the International segment faced challenges due to soft orders and project shipment delays [28][30] - The healthcare business within the Americas showed strong revenue growth, supported by increasing demand for healthcare services [19][20] Market Data and Key Metrics Changes - The company noted improved order trends from large corporate customers towards the end of Q3, with a strong continuation into early December [10][36] - In the International segment, there was year-over-year order growth in China and nearly 20% sequential growth in total Asia-Pacific orders compared to the previous quarter [37] Company Strategy and Development Direction - The company is focusing on transformation by adapting to changes in workplace dynamics, including increased reliance on technology and AI [13][15] - The strategy includes community-based design to create flexible workspaces that cater to diverse employee needs [17] - The company is also emphasizing sustainability through initiatives like Circular by Steelcase, which supports customers in meeting carbon reduction goals [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fiscal 2025 adjusted earnings per share finishing above the targeted range, despite industry growth being slower than expected [26][41] - The company anticipates continued demand growth from large corporate customers, particularly in the financial services and technology sectors [42][44] Other Important Information - The company is implementing additional restructuring actions in the International segment to address ongoing challenges and is targeting approximately $5 million in annualized cost savings by early fiscal 2026 [30] - The company is facing supply chain disruptions due to a laminate supplier affected by Hurricane Helene, which may impact operations into fiscal 2026 [39][40] Q&A Session Summary Question: Clarification on ERP implementation costs - Management clarified that the projected $20 million impact is related to implementation costs and does not include inefficiencies associated with the go-live process [51][56] Question: Trends in continuing business - Management noted a decline in continuing business orders compared to the previous year but expects improvement as more employees return to the office [70][72] Question: Competitive discounting in International markets - Management indicated that competitive discounting pressures are broad-based, particularly in Western Europe, and are strategically targeting volume growth in specific markets [76][78] Question: Exposure to potential tariffs - Management is evaluating contingency plans regarding potential tariffs and is taking actions such as building additional inventory to mitigate risks [86][90] Question: Confidence in International segment recovery - Management expressed that macroeconomic factors and targeted account strategies are crucial for driving revenue growth in the International segment [108][110]

Group 1: Earnings Performance - Steelcase reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, with an earnings surprise of 30.43% [1] - The company posted revenues of $794.9 million for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 0.15% and showing an increase from $777.9 million year-over-year [2] - Over the last four quarters, Steelcase has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Group 2: Stock Performance and Outlook - Steelcase shares have declined approximately 3.5% since the beginning of the year, contrasting with the S&P 500's gain of 26.9% [4] - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $845.8 million, and for the current fiscal year, it is $1.01 on revenues of $3.22 billion [8] - The estimate revisions trend for Steelcase is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Group 3: Industry Context - The Business - Office Products industry, to which Steelcase belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Core Insights - Steelcase Inc. reported a third-quarter revenue of $794.9 million, reflecting a 2% increase compared to the prior year, driven by a 5% growth in the Americas and a 6% decline in International markets [1][2][3] - The company achieved a gross margin improvement of 100 basis points, reaching 33.4%, attributed to revenue growth in the Americas and cost reduction initiatives [6][19] - Total liquidity increased by $152 million, totaling $576.6 million at the end of the third quarter, while total debt stood at $446.9 million [9] Revenue and Orders - Revenue growth was 2%, with organic revenue growth at 3%. The Americas experienced a 5% revenue growth, while International revenue declined by 6% [2][17] - Orders adjusted for divestiture and currency translation effects showed a 2% growth in the Americas but an 8% decline in International orders [3][11] - The Americas' order growth was primarily driven by government customers, while the International decline was influenced by most markets in Asia Pacific and France [3][5] Earnings Performance - Net income for the third quarter was $19.1 million, or $0.16 per share, compared to $30.8 million, or $0.26 per share, in the prior year [1][23] - Adjusted earnings per share increased to $0.30 from $0.29 year-over-year [1][18] Operating Income and Expenses - Operating income decreased to $41.0 million from $43.8 million in the prior year, impacted by previous year's gains from asset sales and a decrease in acquisition earnout liability [4][23] - Operating expenses rose to $223.8 million, an increase of $17.3 million compared to the prior year, driven by higher employee costs [7][23] Future Outlook - The company expects fourth-quarter fiscal 2025 revenue to be between $770 million and $795 million, translating to a decline of 1% to growth of 3% compared to the prior year [11][12] - Projected earnings per share for the fourth quarter is estimated to be between $0.17 to $0.21, with adjusted earnings per share between $0.20 to $0.24 [12][22] Business Segment Performance - The Americas segment reported revenue of $614.7 million, a 5% increase, while the International segment reported $180.2 million, a 6% decline [15][17] - The Americas accounted for 77.3% of total revenue, while International contributed 22.7% [15][17] Cost Management - The company implemented restructuring actions projected to yield approximately $5 million in annualized cost savings by the start of fiscal 2026 [5][19] - Other expenses included a $15.2 million non-cash charge related to the annuitization of a pension plan [8]

GRAND RAPIDS, Mich., Nov. 27, 2024 (GLOBE NEWSWIRE) -- Steelcase Inc. (NYSE: SCS) will webcast a discussion of its third quarter fiscal year 2025 financial results on Thursday, December 19, 2024 at 8:30 a.m. ET. A link to the webcast will be available at http://ir.steelcase.com and a replay of the webcast will be available shortly after the call concludes. The news release detailing the financial results will be issued the previous day, December 18, 2024, after the market closes.  About Steelcase Inc.  Esta ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

Steelcase (SCS) closed the last trading session at $13.01, gaining 0.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $16.67 indicates a 28.1% upside potential.The average comprises three short-term price targets ranging from a low of $16 to a high of $18, with a standard deviation of $1.15. While the lowest estimate indicates an increase of 23% from the current price level, the ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried- ...

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"Our Work Toward Better Futures" Impact Report outlines goals and progress that demonstrate the organization's commitment to improving the wellbeing of people and the planet. GRAND RAPIDS, Mich., Sept. 23, 2024 /PRNewswire/ -- Steelcase (NYSE: SCS), a global design, research and thought leader in the world of work, today announces the release of its 2024 Impact Report, "Our Work Toward Better Futures." The report shares recent goals and progress to build community and belonging in the workplace, as well as ...

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q2 2025 was $0.39, a 26% increase year-over-year, marking the ninth consecutive quarter of earnings growth [9][12] - Revenue for Q2 2025 was $856 million, slightly below the midpoint of the expected range, with a 2% organic revenue growth [13][14] - Adjusted operating income increased by $15 million compared to the prior year, driven by the Americas segment [14][15] - Cash and short-term investments increased by $127 million from Q1, primarily due to $90 million of adjusted EBITDA and proceeds from a land sale [16] Business Line Data and Key Metrics Changes - The education segment led growth with an 18% year-over-year increase, particularly from the Smith System business [8][9] - The Americas segment achieved 3% organic revenue growth, while the international segment saw a $2.4 million improvement in adjusted operating results [10][15] - Orders in the Americas were up 3% year-over-year, marking the fourth consecutive quarter of growth, while international orders declined by 11% [17][18] Market Data and Key Metrics Changes - The company noted strong growth in the education, healthcare, and government sectors, with significant opportunities in K-12 education due to modernization efforts [8][34] - The international segment faced challenges, particularly in major markets, except for India, which showed strong growth [18][40] Company Strategy and Development Direction - The company’s strategy focuses on four pillars: leading workplace transformation, diversifying customer segments, improving profitability, and using business as a force for good [4][12] - The company is committed to innovation and responding to market needs, particularly in education and healthcare sectors [36][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for large corporate customers, anticipating a rebound in orders in the second half of the fiscal year [21][22] - The company expects revenue for Q3 2025 to be between $785 million and $810 million, reflecting 1% to 5% organic growth [19][20] - Management acknowledged potential impacts from the timing of project orders and the upcoming ERP system cutover [20] Other Important Information - The company completed the sale of approximately 315 acres of unused land for $44 million, which was excluded from adjusted operating income calculations [14] - The annual impact report highlighted the company’s commitment to community and environmental goals, including reducing carbon footprint and increasing recycled content in packaging [11] Q&A Session Summary Question: Commentary on corporate orders picking up in the second half - Management noted confidence in the pipeline for large corporate customers, with expectations that orders will materialize in the latter half of the year [21][22] Question: OpEx for the quarter came in lower than expected - Management clarified that when adjusting for the gain net of variable compensation, OpEx was in line with expectations [23] Question: Flexibility in achieving FY'25 targets based on cost and efficiency moves - Management indicated a balanced approach between cost efficiency and order timing as key drivers for achieving targets [26] Question: Win rates and market share gains in the Americas - Management confirmed that win rates are above target levels, contributing to market share gains in the Americas [27] Question: Growth drivers outside of large corporates - Management highlighted growth in education, healthcare, and government sectors as key areas of focus and investment [33][34] Question: Overview of international segment challenges - Management acknowledged challenges in many international markets but noted strong activity in India [39][40] Question: Share gains in government, education, and healthcare markets - Management indicated that diversification efforts are ongoing, with potential for these sectors to become a significant part of the business [43][44]