Steelcase Inc.(NYSE: SCS) stock surged over 5.6% in after-hours session on September 18^th, 2017 post their better than expected second quarter of 2018 results. The stock rallied over 10.9% in the last four weeks (As of September 18^th, 2017; Source: Google finance), but corrected over 15.1% in the last three months.

The group’s Revenue rise was flat which rose 2% during the second quarter of 2018. Their EMEA revenue surged 5% or 4% on an organic basis, while other category revenue growth was strong which increased 20%, or 19% on an organic basis. But America’s revenue and orders fell less than 1% against prior corresponding period driven by ongoing rise of the group’s new products and solutions which offset pressure in traditional furniture applications. Steelcase operating income fell to $54.2 million during the quarter against an operating income of $61.9 million in the same period last year.  America’s performance pressure offset better EMEA outcome on the back of higher cost of sales as a percentage of revenue and higher operating expenses.

Steelcase declared a quarterly cash dividend of $0.1275 per share, which would be paid on or before October 12, 2017, to shareholders of record as of September 28, 2017. They have a cash of $373 million, and total debt was $296 million, as of the end of the second quarter. The group is on track to launch more than 80 new products for fiscal 2018. Accordingly, they are expanding their market by recently launching smart and connected products while addressing the rising demand for ancillary solutions. The group made a relationship with FLOS, a worldwide leader in lighting whose portfolio includes decorative, architectural and custom lighting. They partnered with Bolia in EMEA, who is a contemporary Danish furniture designer and maker.  The group also partnered with Mitchell Gold + Bob Williams, a premier residential and commercial furniture manufacturer and retailer.

For the third quarter of fiscal 2018, the group expects the revenue to be in the range of $785 to $810 million, which comprises over $11 million of forecasted favorable currency translation effects which comprises an organic decline of 1 percent to organic growth of 2 percent against pcp.  They forecast their diluted earnings per share to be in the range of $0.21 to $0.25 for the third quarter of fiscal 2018.