Steelcase Inc. Expects "Significantly Improved" Profit as Offices Reopen

Shares of Steelcase Inc., the renowned office-furniture maker, experienced a surge in after-hours trading on Tuesday. The company announced its optimistic outlook, anticipating a "significantly improved" profit as more employers transition their workers back to the office.

Full Fiscal Year Expectations

Third Quarter Projections

Steelcase anticipates third-quarter revenue to be in the range of $780 million to $805 million. This falls short of FactSet's sales forecast of $819 million. However, the company's estimates for adjusted earnings per share are between 23 cents and 27 cents, surpassing expectations of 19 cents per share.

Navigating the Impact of the Pandemic

Steelcase faced challenges amidst the ongoing return-to-office mandates following the disruption caused by the pandemic. In the second quarter, the company experienced a decline in sales. Yet, Steelcase managed to mitigate the impact through increased prices in order to offset lower orders.

Armbruster noted that although project activity has weakened during the first half of the year, Steelcase has witnessed substantial growth in its ongoing business as customers invest in refreshing their existing spaces.

Second Quarter Performance

During the second quarter, Steelcase reported net income of $27.5 million, or 23 cents per share, compared to $19.6 million, or 17 cents per share, during the same period last year. Revenue decreased from $863.3 million to $854.6 million in the prior-year quarter.

Excluding amortization and restructuring costs, Steelcase earned 31 cents per share.

Analyst Expectations

According to analysts surveyed by FactSet, the projected adjusted earnings per share for Steelcase was 20 cents, with anticipated sales of $829 million.