NYSE$SCS

Steelcase Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Steelcase reported strong Q4 2020 results, with revenue increasing by 4% and net income significantly rising due to the sale of PolyVision, despite initial COVID-19 impacts.

Steelcase reported a strong fourth quarter with revenue of $946.2 million and net income of $66.5 million, including gains from the sale of PolyVision. Adjusted earnings per share increased by 34% compared to the prior year. The company's performance was driven by growth in EMEA and the Americas, despite initial impacts from COVID-19.

  • Revenue increased by 4% compared to the prior year, reaching $946.2 million.
  • Net income was $66.5 million, or $0.55 per share, including a gain from the sale of PolyVision.
  • Adjusted earnings per share increased by 34% compared to the prior year, reaching $0.39 per share.
  • Orders grew by 7% in the fourth quarter, led by strong growth in EMEA and the Americas.

Headline financials

Total Revenue

$946M

Previous: $912M+3.7%
EPS (adj)

$0.39

Previous: $0.29+34.5%
Gross Margin

32.5%

No prior period
Operating Margin

7.3%

No prior period
Capital Expenditures

$24.3M

Previous: $24.6M-1.2%
Free Cash Flow

$118M

Previous: $60.5M+94.5%
Net Income

$66.5M

Previous: $22.6M+194.2%
Operating Income

$69M

Previous: $47M+46.8%
Gross Profit

$307M

Previous: $283M+8.4%
Cash & Equivalents

$701M

Previous: $261M+168.3%
Total Assets

$2.57B

Previous: $2.14B+19.7%
Stock-Based Comp

$2.4M

Previous: $2.3M+4.3%

Revenue & EPS history

Steelcase · Revenue · Quarterly

$946M

Q4 2020+3.7%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Due to the COVID-19 crisis interrupting operations, Steelcase is unable to provide meaningful estimates of revenues or earnings per share for fiscal year 2021.

Tailwinds

  • Strong backlog entering fiscal 2021.
  • Strong orders entering fiscal 2021.
  • Growing pipeline, particularly in EMEA and the Americas.
  • Actions being taken will protect people and relationships with customers, dealers, and suppliers.
  • Actions will protect the company’s capital, so they can navigate through this crisis and emerge strong and ready to compete.

Headwinds

  • COVID-19 crisis has interrupted operations.
  • Temporary reduction or suspension of operations at many manufacturing locations and distribution centers around the world.
  • Significantly reduce the company's ability to make and ship products and therefore recognize revenue and generate cash beginning in the first quarter of fiscal 2021.
  • Finished goods inventory could increase as customers face their own local closures and are unable to receive products.
  • Raw material and work in process inventories also could increase as it receives order cancellations.

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%

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