NYSE$SCS

Steelcase Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported second quarter revenue and earnings, benefiting from a strong beginning backlog and cost reduction actions.

Steelcase reported a decrease in revenue but an increase in adjusted operating income for the second quarter of fiscal year 2021. Revenue declined by 18% compared to the prior year, but adjusted operating income increased due to significant cost reduction actions.

  • Second quarter revenue was $818.8 million, a decrease of 18% compared to the prior year.
  • Net income was $55.5 million, or $0.47 per share, including $15.6 million of pre-tax restructuring costs.
  • Adjusted earnings were $0.55 per share, excluding restructuring costs.
  • Year-over-year order decline rates have moderated for four consecutive months.

Headline financials

Total Revenue

$819M

Previous: $998M-18.0%
EPS (adj)

$0.55

Previous: $0.50+10.0%
Gross Margin

32.9%

No prior period
Capital Expenditures

$8.6M

Previous: $17.7M-51.4%
Free Cash Flow

$130M

Previous: $96.1M+35.0%
Net Income

$55.5M

Previous: $60.5M-8.3%
Operating Income

$88.6M

Previous: $85.3M+3.9%
Gross Profit

$270M

Previous: $334M-19.2%
Cash & Equivalents

$522M

Previous: $229M+128.0%
Total Assets

$2.44B

Previous: $2.4B+1.9%
Stock-Based Comp

$1.7M

Previous: $2.5M-32.0%

Revenue & EPS history

Steelcase · Revenue · Quarterly

$819M

Q2 2021-18%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The company expects third quarter fiscal 2021 revenue to be in the range of $690 to $725 million and diluted earnings per share of between $0.07 to $0.13.

Tailwinds

  • As the number of COVID cases declined in Asia Pacific and EMEA, a strong return to the office was observed.
  • Companies are utilizing the workplace to drive higher productivity.
  • Companies are utilizing the workplace to increase collaboration.
  • Companies are utilizing the workplace to promote their culture.
  • Momentum is expected to build to bring employees back to work in the U.S.

Headwinds

  • Orders declined an average of 38 percent during the first three weeks of September compared to the prior year.
  • Orders declined 41 percent in the Americas.
  • Orders declined 27 percent in EMEA.
  • Orders declined 37 percent in the Other category.
  • The year-over-year comparison also reflects the impact of the timing of the U.S. Thanksgiving holiday which will fall in the third quarter of fiscal 2021 compared to the fourth quarter of fiscal 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports

Historical avg

+0.7%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-0.6%

Avg return

30 days after

55%

35 / 64 earnings

Positive

+24.1%

Q2 2019

Best reaction

-20.6%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.2%+3.2%+0.5%
Q1 2026+0.0%+0.0%+0.0%
Q4 2025+6.6%+0.0%+0.0%
Q3 2026-0.4%+0.0%+0.0%
Q3 2025-5.6%+0.0%+0.0%
Q2 2025-5.0%+0.0%+0.0%
Q1 2025+5.6%+0.0%+0.0%
Q4 2024-4.4%+0.0%+0.0%
Q3 2024+12.6%+0.0%+0.0%
Q2 2024+20.3%+0.0%+0.0%
Q1 2024+6.1%+0.0%+0.0%
Q4 2023+4.1%+0.0%+0.0%
Q3 2023+3.8%+0.0%+0.0%
Q2 2023-11.2%+0.0%+0.0%
Q1 2023+1.7%+0.0%+0.0%
Q4 2022-7.8%+0.0%+0.0%
Q3 2022-3.8%+0.0%+0.0%
Q2 2022-3.2%+0.0%+0.0%
Q1 2022+5.2%+0.0%+0.0%
Q4 2021-4.7%-4.3%-9.8%
Q3 2021-0.4%-8.3%-2.8%
Q2 2021-16.8%
Q1 2021-15.1%
Q4 2020+22.1%
Q3 2020+16.2%
Q2 2020+12.2%
Q1 2020-10.0%
Q4 2019-14.1%
Q3 2019+2.0%
Q2 2019+24.1%
Q1 2019-8.5%
Q4 2018+4.9%
Q3 2018+2.1%
Q2 2018+6.3%
Q1 2018-14.5%
Q4 2017+1.9%
Q3 2017+8.9%
Q2 2017+12.8%
Q1 2017-2.7%
Q4 2016+2.4%
Q3 2016-20.6%
Q2 2016+2.1%
Q1 2016+1.7%
Q4 2015-2.8%
Q3 2015+1.5%
Q2 2015+7.4%
Q1 2015-12.1%
Q4 2014+11.1%
Q3 2014+5.6%
Q2 2013+1.9%
Q2 2014+0.9%
Q1 2014-6.4%
Q4 2013-2.3%
Q3 2013+12.4%
Q2 2012-1.2%
Q1 2012+6.9%
Q1 2013+1.5%
Q4 2010+0.7%
Q4 2012+0.7%
Q3 2011-0.8%
Q3 2012-4.4%
Q2 2011-5.8%
Q4 2011-5.8%
Q1 2011-0.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro