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Steelcase (SCS) to Post Q3 Earnings: What's in the Offing?

Zacks Equity Research

Steelcase Inc. SCS will report third-quarter fiscal 2020 results on Dec 17, after the bell.

The furniture company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with a positive surprise of 6.7%, on average.

The stock gained 30.7% year to date, underperforming the 37.4% growth of the industry it belongs to.

Expectations This Time Around

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $935.7 million, indicating an increase of 3.9% from the year-ago quarter’s actual figure. Revenues are likely to have benefited fromindustry growth, acquisitions and market share gains.

In the second quarter of fiscal 2020, Steelcase’s revenues increased 14% year over year to $998 million.

Steelcase Inc. Revenue (TTM)

Steelcase Inc. Revenue (TTM)

Steelcase Inc. revenue-ttm | Steelcase Inc. Quote

The consensus mark for earnings stands at 35 cents, indicating a year-over-year decline of 2.8%. The decline is likely to have been due to increase in operating expenses owing to acquisitions and investments in product development, sales and marketing.

In the second quarter of fiscal 2020, earnings per share increased 39% year over year to 50 cents.

 What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Steelcasethis season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Steelcase has an Earnings ESP of 0.00% and a Zacks Rank #3.

Peer Releases

Signet Jewelers Limited SIG reported third-quarter fiscal 2020 adjusted loss of 76 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of $1.07 and the year-ago quarter’s reported loss of $1.06. The stock carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Big Lots BIG posted adjusted net loss of 18 cents a share that was narrower than the Zacks Consensus Estimate of a loss of 21 cents but wider than a loss of 16 cents reported in the prior-year quarter. The stock carries a Zacks Rank #3.

DocuSign DOCU reported quarterly earnings of 11 cents per share, beating the Zacks Consensus Estimate of 3 cents. This compares with break-even earnings per share a year ago. The stock carries a Zacks Rank #3.

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Steelcase Inc. (SCS) : Free Stock Analysis Report
 
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