NYSE$SCS

Steelcase Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to the economic uncertainty and a cyberattack, but maintained profitability through cost controls.

Steelcase reported a decrease in revenue of 35% compared to the prior year, with a net income of $2.1 million, or $0.02 per share. The results were impacted by a cyberattack that delayed approximately $60 million of revenue to the fourth quarter. Despite the challenges, the company maintained profitability through aggressive cost controls.

  • Third quarter revenue was $617.5 million, a 35% decrease compared to the prior year.
  • Net income was $2.1 million, or $0.02 per share, including $11.4 million of pre-tax restructuring costs.
  • Adjusted earnings were $0.08 per share, excluding restructuring costs and related tax benefits.
  • A cyberattack caused a delay of approximately $60 million of revenue to the fourth quarter.

Headline financials

Total Revenue

$618M

Previous: $955M-35.4%
EPS (adj)

$0.08

Previous: $0.46-82.6%
Capital Expenditures

$14.1M

Previous: $16.6M-15.1%
Free Cash Flow

-$21.8M

Previous: $159M-113.7%
Net Income

$2.1M

Previous: $54.9M-96.2%
Operating Income

$0.00

Previous: $75.1M-100.0%
Gross Profit

$178M

Previous: $316M-43.7%
Cash & Equivalents

$484M

Previous: $368M+31.7%
Total Assets

$2.39B

Previous: $2.52B-5.5%
Stock-Based Comp

$2.2M

Previous: $2.3M-4.3%

Revenue & EPS history

Steelcase · Revenue · Quarterly

$618M

Q3 2021-35.4%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The company expects fourth quarter fiscal 2021 revenue to be approximately $650 million and diluted earnings per share to be approximately breakeven.

Tailwinds

  • Early stages of vaccine deployment beginning.
  • Some customers are reactivating idled project opportunities.
  • Customers will be ready to return to their offices next year.
  • Continuing to invest in new products designed to help customers make their offices safe.
  • Continuing to invest in new products designed to help customers make their offices flexible, productive and inspiring.

Headwinds

  • Average weekly order levels during the first two weeks of December remained similar to the third quarter.
  • Projected operating expenses of between $180 million to $185 million.
  • Projected interest expense, net of investment income and other income, net, of approximately $5 million.
  • Expected organic decline of 28 percent compared to the fourth quarter of fiscal 2020.
  • Backlog of customer orders was $545 million, or 15 percent lower than the prior year.

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