Research Desk Line-up: Virco Mfg. Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 2, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Steelcase Inc. (NYSE: SCS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SCS, following the Company's disclosure of its financial results on September 18, 2017, for the second quarter fiscal 2018. The Company's revenue increased 2.3% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Business Equipment industry. Pro-TD has currently selected Virco Mfg. Corporation (NASDAQ: VIRC) for due-diligence and potential coverage as the Company announced on September 14, 2017, its financial results for Q2 and first six months which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Virco Mfg. when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SCS; also brushing on VIRC. With the links below you can directly download the report of your stock of interest-free of charge at:
For three months ended August 25, 2017, Steelcase's revenue increased 2.3% to $775.6 million from $758.0 million in Q2 FY17. Revenue surpassed analysts' expectations of $759.83 million.
During Q2 FY18, Steelcase's gross profit increased 8.4% to $285.4 million from $263.1 million in Q2 FY17. For the reported quarter, the Company's gross margin decreased 140 basis points to 33.3% of revenue from 34.7% of revenue in Q2 FY17.
For the reported quarter, Steelcase's operating income decreased 12.4% to $54.2 million from $61.9 million in Q2 FY17. The decrease was primarily due to increase in cost of sales. During Q2 FY18, the Company's operating margin decreased 120 basis points to 7% of revenue from 8.2% of revenue in Q2 FY17. For the reported quarter, Steelcase's adjusted operating income decreased 12.8% to $54.2 million from $62.2 million in Q2 FY17.
During Q2 FY18, Steelcase's net income decreased 3.4% to $36.9 million from $38.2 million in Q2 FY17. For the reported quarter, Steelcase's diluted EPS was $0.31, at par with $0.31 in Q2 FY17. During Q2 FY18, Steelcase's adjusted diluted EPS decreased 3.1% to $0.31 from $0.32 in Q2 FY17. Adjusted diluted EPS surpassed analysts' expectations of $0.23.
During Q2 FY18, the Company repurchased 2 million shares at an average price of $13.65 per share.
Steelcase's Segment Details
Americas - During Q2 FY18, Americas segment's revenue decreased 0.4% to $568.5 million from $571.0 million in Q2 FY17. For the reported quarter, the segment's gross margin decreased 250 basis points to 34.4% of revenue from 36.9% of revenue in Q2 FY17. During Q2 FY18, the segment's operating income decreased 26% to $57.7 million from $78.0 million in Q2 FY17.
Europe, Middle-East, and Africa (EMEA) - During Q2 FY18, the EMEA segment's revenue increased 4.8%, or 4% on organic basis, to $118.2 million from $112.8 million in Q2 FY17. The increase was due to growth in several markets including the UK, Iberia, Eastern and Southern Europe, and Middle-East and Africa. For the reported quarter, the segment's gross margin increased 280 basis points to 26.6% of revenue from 23.8% of revenue in Q2 FY17. For the reported quarter, the segment's operating loss was $3.6 million compared to operating loss of $11.4 million in Q2 FY17.
Other - During Q2 FY18, the Other segment's total revenue increased 19.8% to $88.9 million from $74.2 million in Q2 FY17. For the reported quarter, the segment's gross margin increased 30 basis points to 35.1% of revenue from 34.8% of revenue in Q2 FY17. For the reported quarter, the segment's operating income increased 94.2% to $6.8 million from $3.5 million in Q2 FY17.
As on August 25, 2017, Steelcase's cash and cash equivalents decreased 29.3% to $139.3 million from $197.1 million in Q4 FY17.
During Q2 FY18, the Company's net accounts receivable increased 10.8% to $340.9 million from $307.6 million in Q4 FY17.
For the reported quarter, Steelcase's inventories increased 6.3% to $173.5 million from $163.1 million in Q4 FY17.
For the reported quarter, the Company's accounts payable increased 3.1% to $223.7 million from $216.8 million in Q4 FY17.
During Q2 FY18, Steelcase's long-term debt, less current maturities was $293.3 million, almost at par with $294.6 million in Q4 FY17.
During H1 FY17, the Company's cash provided by operating activities increased 10.9% to $22.3 million from $20.1 million in H1 FY16.
For Q3 FY18, Steelcase expects revenue to be in the range of $785 million to $810 million and estimates diluted EPS to be in the range of $0.21 to $0.25.
On Friday, September 29, 2017, the stock closed the trading session at $15.40, slightly up 0.65% from its previous closing price of $15.30. A total volume of 1.11 million shares have exchanged hands, which was higher than the 3-month average volume of 847.54 thousand shares. Steelcase's stock price surged 18.01% in the last one month, 10.00% in the past three months, and 10.87% in the previous twelve months. The stock is trading at a PE ratio of 15.19 and has a dividend yield of 3.31%. The stock currently has a market cap of $1.78 billion.
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