Steelcase Beats Q1 Expectations, Stock Jumps
Steelcase Inc. (NYSE: SCS) reported first-quarter fiscal 2025 results that were in line with analysts' expectations. The office furniture maker posted adjusted earnings of $0.01 per share, beating expectations of a $0.00 loss per share. Revenue came in at $723.8 million, matching expectations. Following the earnings announcement, the company’s stock price surged 10.9% in pre-market trading.
Gross margin for the quarter was 26.6%, which was slightly above estimates, benefiting from lower raw material costs. CEO Sara Armbruster noted the company's focus on operational improvements and cost reductions, along with growth in the Americas segment. She also indicated that despite the continued uncertainty in macro-economic conditions, Steelcase is positioned to execute its strategy.
For Q2 FY25, the company expects revenue to be in the range of $735 million to $765 million, which is slightly below consensus estimates of $766.4 million. Adjusted EPS is projected to be between $0.07 and $0.11, compared to analysts’ forecasts of $0.11.
Despite the mixed outlook, investors reacted positively to the Q1 results, possibly indicating optimism in the company’s ability to navigate a challenging economic environment and benefit from improving operational efficiencies.
