Steelcase Inc. (NYSE: SCS) reported third-quarter results ahead of expectations and announced solid guidance for the fourth quarter. The company could record higher consolidated revenue in Q4, according to Raymond James.
Raymond James analyst Budd Bugatch maintains an Outperform rating on Steelcase with a $20 price target.
Steelcase reported Q3 consolidated revenues of $901 million, better than the Street estimate of $898 million. Non-GAAP EPS was 36 cents, after adjusting for pension charges, lower variable compensation and a lower tax expense, beating the 30-cent estimate.
Steelcase's results reflected double-digit order growth, driven by customer acceptance of the company’s new product offerings as well as partnerships and recent acquisitions, Bugatch said.
Management guided to a Q4 non-GAAP EPS range of 24 cents-28 cents and revenues of $860 million-$885 million. The guidance supports “our positive investment thesis surrounding the current industry climate for office furniture,” Bugatch wrote in a note.
Following tough market conditions, BIFMA monthly incoming order rates have registered year-on-year growth for seven consecutive months. Strong employment trends and a tight job market have encouraged companies to look for office spaces that would help recruit and retain talent. The positive industry climate for office furniture producers could continue next year.
Shares traded around $14.68 at time of publication.
Steelcase Expands Relationship with Danish Design Company Bolia
Latest Ratings for SCS
|Sep 2018||Raymond James||Maintains||Outperform||Outperform|
|Sep 2017||Sidoti & Co.||Upgrades||Neutral||Buy|
|Jun 2017||Raymond James||Downgrades||Strong Buy||Outperform|
View More Analyst Ratings for SCS
View the Latest Analyst Ratings
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