GRAND RAPIDS, Mich. - Steelcase Inc . (NYSE: NYSE:SCS) reported fourth-quarter earnings that slightly exceeded Wall Street expectations, but a revenue shortfall sent shares tumbling nearly 6% in aftermarket trading. The office furniture maker announced adjusted earnings per share (EPS) of $0.23 for the quarter, $0.02 higher than the analyst consensus of $0.21. However, revenue for the quarter was reported at $775.2 million, falling short of the consensus estimate of $780.25 million.
The company's revenue saw a 3% decline compared to the same quarter last year, with a notable 2% decrease in the Americas and a 6% decline internationally. Despite the revenue dip, Steelcase's earnings per share increased by 38% compared to the previous year, indicating significant earnings improvement. Sara Armbruster, president and CEO of Steelcase, expressed pride in the company's earnings growth, attributing it to strong order growth in the Americas, driven by large corporate customers investing in inspiring workplaces.
Looking ahead, Steelcase provided guidance for the first quarter of fiscal 2025, projecting EPS in the range of $0.08 to $0.12, which brackets the analyst consensus of $0.10. The company anticipates first-quarter revenue to be between $715 and $740 million, which is below the consensus estimate of $741.23 million. For the full fiscal year 2025, Steelcase expects EPS to be in the range of $0.85 to $1.00, compared to the consensus estimate of $0.92.
The company's backlog of customer orders at the end of the fourth quarter stood at approximately $625 million, 8% lower than the prior year. However, orders in the first three weeks of the first quarter of fiscal 2025 grew by 10% compared to the previous year, indicating potential for revenue stabilization.
Despite the positive earnings per share results, the market reacted negatively to the revenue miss, with Steelcase shares declining 5.90% in aftermarket trading. This response underscores the challenges faced by the company in a competitive and evolving market, as it continues to navigate macroeconomic factors and strives to meet its financial targets for the coming year.
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