Hot Earnings stock to watch: Steelcase Inc. (NYSE: SCS)

Free $100 Forex No-Deposit Bonus

Steelcase Inc. (NYSE: SCS) stock rose over 4.8% in the pre-market session of December 18th, 2019 (Source: Google finance) as the company posted better than expected results for the third quarter of FY 20. The company has delivered the gross margin of 33.1 percent in the third quarter, which reflects an increase of 220 basis points compared to the prior year. This is due to a 210 basis point improvement in the Americas (including 160 basis points attributable to the pension charge in the prior year) and a 350 basis point improvement in EMEA.  On a consolidated basis, the improvement was on the back of pricing benefits, lower commodity costs, and higher absorption of fixed costs, partially offset by unfavorable business mix. Total liquidity, comprised of cash, cash equivalents and the cash surrender value of company-owned life insurance, totaled $527.6 million and total debt was of total $484.1 million at the end of the third quarter.

SCS in the third quarter of FY 20 has reported the adjusted earnings per share of 46 cents, beating the analysts’ estimates for the adjusted earnings per share of 35 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 6 percent to $955.20 billion in the third quarter of FY 20, beating the analysts’ estimates for revenue by 2.02%. The growth came due to strong growth in the Americas and the Other category.  The growth in the Americas came on the back of favorable timing of shipments compared to recent trends and the prior year, in part due to the timing of the U.S. Thanksgiving holiday.  Orders (adjusted for currency translation effects, acquisitions and divestitures) rose 4 percent compared to orders in the third quarter of fiscal 2019, which grew 10 percent compared to the previous year. EMEA has posted operating income of $6.3 million compared to an operating loss of $0.7 million in the prior year, on the back of gross margin improvement initiatives and cost reduction efforts.  The Other category reported operating income of $3.3 million compared to $4.2 million in the prior year.

Additionally, the company has declared a quarterly cash dividend of $0.145 per share, which is payable on or before January 13, 2020, to shareholders of record as of December 27, 2019.

For fiscal 2020, the company expect revenue to be approximately $3.7 billion, with revenue in the fourth quarter expected to be in the range of $905 to $930 million.

Meanwhile, the company today has appointed Catherine “Triona” C.B. Schmelter to its board of directors.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.