Steelcase Inc (NYSE:SCS) stock rose 10.75% (As on June 22, 11:28:25 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 24. Orders (adjusted for the impact of an acquisition, divestitures and currency translation effects) declined 7 percent compared to the prior year, which had grown 22 percent compared to the first quarter of fiscal 2022. Orders declined 6 percent in the Americas and 11 percent in International. The order decline in the Americas was primarily due to a decline in project business, partially offset by growth in continuing business. The order decline in International was across most markets in EMEA and China, partially offset by growth across all other markets in Asia Pacific. On a consolidated basis, orders grew 21 percent sequentially versus the fourth quarter of fiscal 2023, which is consistent with the seasonal increase in the prior year. Total liquidity, comprised of cash and cash equivalents and the cash surrender value of company-owned life insurance, aggregated to $199.9 million at the end of the first quarter. Total debt of $446.5 million represented a $34.7 million decrease compared to the end of the fourth quarter, as the company repaid a maturing note payable during the quarter.

SCS in the first quarter of FY 24 has reported the adjusted earnings per share of 9 cents, beating the analysts’ estimates for the adjusted earnings per share of 1 cents. The company had reported the adjusted revenue growth of 2 percent to $751.9 million in the first quarter of FY 24, beating the analysts’ estimates for revenue of $719.23 billion. This includes 2 percent organic growth in the Americas and a 7 percent organic decline in International. The Americas growth was primarily driven by higher pricing but also benefited from faster order fulfillment patterns, partially offset by a lower beginning backlog. The decline in International was primarily driven by lower beginning backlog and continued macroeconomic concerns. Adjusted operating income of $19.7 million in the first quarter (which excludes $8.1 million of restructuring costs and $4.3 million of amortization of purchased intangible assets) represented an increase of $24.3 million compared to the prior year. The increase in adjusted operating income was driven by a $28.1 million improvement in the Americas, partially offset by a $3.8 million decline in International.

Steelcase expects Q2 2024 EPS to be in the range of $0.19-$0.23 versus the analyst consensus of $0.21.

Steelcase expects Q2 2024 revenue to be in the range of $815.00M-$840.00M versus the analyst consensus of $841.00M.