: Steelcase stock rises after earnings, although executives warn of ‘challenging’ environment for workplace furniture
Shares of office-furniture supplier Steelcase Inc. SCS rose on Wednesday reported first-quarter results that beat estimates, but its second-quarter sales forecast came up short of Wall Street’s expectations, as demand remains in flux even as more corporate staff return to offices. The company reported first-quarter net income of $1.5 million, or 1 cent per share, contrasting with a loss of $11.4 million, or 10 cents a share, in the same quarter last year. Sales rose to $751.9 million, compared with $740.7 million in the prior-year quarter. Adjusted for amortization and restructuring costs, Steelcase earned 9 cents a share. Analysts polled by FactSet expected adjusted earnings per share of 1 cent, on revenue of $719 million. “Our revenue from large corporate and government customers was better than we expected, despite the environment remaining challenging,” Chief Executive Sara Armbruster said in a statement. Higher prices for its workplace furniture helped results in Steelcase’s Americas region, while “continued macroeconomic concerns” weighed on its international business. Steelcase said it expected $815 million to $840 million in sales for its second quarter, compared with FactSet forecasts for $838 million. The company said it expected adjusted earnings per share of between 19 cents and 23 cents for the second quarter, compared with FactSet estimates for 21 cents. Shares rose 1.9% after hours.
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