Steelcase Inc. (NYSE:SCS) Gains On Robust Guidance
Steelcase Inc. (NYSE:SCS) reported its 4Q and full year operation results after markets closed on 25th March. The buoyant results which were well above the analyst and market expectations resulted in the investors trooping into the stock, to raise the price of the stock to levels which were near its 52 week high points.
Revenue for the quarter came in at $779.4 million, while its net income came in at $23.9 million for the same period. Its earnings per share came in at 19 cents per share. These figures compare well against the $721 million revenue and earnings of 22 cents it had reported in 4Q13. The earnings took a slight hit due to the “restructuring efforts and impairment against goodwill”. If those onetime expenses are not considered, then the earnings per share rise to a impressive 28 cents.
In terms of geographic break down in the revenue contribution to the company coffers, the Asia pacific region registered growth of 11 percent as against the Americas region posting a 6 percent increase in comparison to 4Q13. The Europe and Middle East region was the sole underperforming sector as its business shrunk by 13 percent in comparison to 4Q13.
Steelcase Inc. (NYSE:SCS) management also provided a very aggressive guidance to the ongoing quarter and for the full year 2015 operations. In the first quarter of 2015, the firm hopes to bring in revenue which would range between $715 and $740 million, which would translate into a 7 to 11 percent increase over its 1Q13 revenue of $667.1 million.
Underlying Strength In The Business
Explaining the buoyancy in the company operations, Steelcase Inc. (NYSE:SCS) President, Chief Executive Officer and Director James P. Keane has been quoted to have said that, “The Americas segment continues to deliver exemplary performance, realizing an adjusted operating margin of 11.5 percent in the fourth quarter and for fiscal 2014 and gaining market share in the U.S. for the third consecutive year. Our investment in research and our ability to monetize our insights through new products and applications are helping to drive these strong results.”