Shares of Steelcase Inc. rallied after hours on Tuesday, after the office-furniture maker stated it expects “significantly improved” revenue as extra employers order their employees again to the workplace.
For the complete fiscal 12 months, Steelcase
SCS,
stated it expects “significantly improved” adjusted earnings per share of between 80 cents and 90 cents, above FactSet estimates for 66 cents a share.
“More companies are issuing return-to-office mandates, and we’re optimistic that our demand levels will improve as customers seek our help to evolve their workplaces to engage, connect and work better for their employees,” Chief Executive Sara Armbruster stated in an announcement.
For its third quarter, Steelcase stated it expects income to be in a variety of $780 million to $805 million, in contrast with FactSet forecasts for $819 million in gross sales. The firm stated it expects adjusted earnings per share of 23 cents to 27 cents, above expectations for 19 cents a share.
Shares rose 5% in after-hours buying and selling.
Steelcase reported earnings amid the push-and-pull of return-to-office mandates after the pandemic disrupted workplaces. For Steelcase’s second quarter, gross sales fell, and the corporate leaned on larger costs to offset decrease orders.
“Through the first half of the year, although project activity has softened, we’ve seen strong growth in our continuing business as customers make investments to refresh their existing spaces,” Armbruster stated.
The firm reported second-quarter web revenue of $27.5 million, or 23 cents a share, in contrast with $19.6 million, or 17 cents a share, in the identical quarter final 12 months. Revenue fell to $854.6 million from $863.3 million within the prior-year quarter.
Adjusted for amortization and restructuring prices, Steelcase earned 31 cents a share.
Analysts polled by FactSet anticipated Steelcase to report adjusted earnings per share of 20 cents, on gross sales of $829 million.
Source web site: www.marketwatch.com
