Steelcase (SCS) Tops Q1 Earnings Estimates

Core Insights - Steelcase (SCS) reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, and showing an increase from $0.09 per share a year ago, representing a 60% earnings surprise [1] - The company posted revenues of $727.3 million for the quarter ended May 2024, which was a slight miss against the Zacks Consensus Estimate by 0.08%, and a decrease from $751.9 million year-over-year [2] - Steelcase shares have underperformed the market, losing about 6.9% since the beginning of the year compared to the S&P 500's gain of 15% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $865.3 million, and for the current fiscal year, it is $0.92 on revenues of $3.27 billion [6] - 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 [5] Industry Context - The Business - Office Products industry, to which Steelcase belongs, is currently in the top 2% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [7] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [4]