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- ...

Editor's note: Seeking Alpha is proud to welcome Given Mahlangu as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access. I'm a self taught equity analyst, My educational background is in Nuclear science and engineering, and I work as a quantity surveyor for a consultation firm in South Africa where we help clients with estimating the value of construction pro ...

"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]

Core Insights - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that while trends can be profitable, confirming their sustainability is crucial [1][8]. Group 1: Stock Performance - Steelcase (SCS) has shown a solid price increase of 12.4% over the past 12 weeks, indicating strong investor interest [3]. - Currently, SCS is trading at 82.4% of its 52-week high-low range, suggesting it may be on the verge of a breakout [4]. - The stock has also increased by 7.9% over the past four weeks, reinforcing the ongoing positive trend [10]. Group 2: Ratings and Recommendations - SCS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [11]. - The average broker recommendation for SCS is also 1 (Strong Buy), indicating high optimism from the brokerage community regarding its near-term price performance [12]. Group 3: Investment Strategies - The article suggests utilizing the "Recent Price Strength" screen to identify stocks like SCS that are on an upward trend supported by strong fundamentals [2][9]. - There are over 45 Zacks Premium Screens available for investors to find winning stock picks tailored to their investing styles [6].

Core Insights - Steelcase (SCS) is currently rated as a 1 (Strong Buy) by Zacks and has an A rating for Value [3] - The company has a P/CF ratio of 9.37, which is lower than the industry average of 10.69, indicating potential undervaluation [4] - SCS's P/B ratio stands at 1.77, also below the industry average of 2.36, further suggesting it may be undervalued [6] - Over the past 52 weeks, SCS's P/CF has fluctuated between 6.17 and 10.46, with a median of 9.22 [4] - The P/B ratio has ranged from 0.99 to 1.84 in the same period, with a median of 1.61 [6] - These valuation metrics indicate that Steelcase is likely undervalued and presents a strong investment opportunity [7]