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Aug 25, 2023
Steelcase Q2 2024 Earnings Report
Steelcase reported better-than-expected revenue and earnings due to improved order fulfillment and pricing benefits.
Key Takeaways
Steelcase reported Q2 2024 revenue of $854.6 million, net income of $27.5 million, and adjusted earnings per share of $0.31. Revenue decreased 1% compared to the prior year, while operating income increased by $12.1 million to $41.0 million.
Revenue decreased 1 percent in the second quarter compared to the prior year.
Operating income of $41.0 million was 4.8 percent of revenue.
Gross margin of 33.2 percent increased by 410 basis points compared to the prior year.
The company's backlog of customer orders was approximately $700 million, which was 26 percent lower than the prior year.
Steelcase
Steelcase
Forward Guidance
The company expects third quarter fiscal 2024 revenue to be in the range of $780 to $805 million and expects to report earnings per share of between $0.19 to $0.23 and adjusted earnings per share of between $0.23 to $0.27.
Positive Outlook
- Strength of first half results.
- Current market conditions.
- Expect full year adjusted earnings to finish above the target set at the beginning of the year.
- Improved operating results.
- Strengthened liquidity.
Challenges Ahead
- Third quarter fiscal 2024 revenue to be in the range of $780 to $805 million.
- Projected revenue range translates to a decline of 3 to 6 percent.
- Backlog of customer orders was approximately $700 million, which was 26 percent lower than the prior year.
- Orders declined 7 percent in the Americas and 5 percent in International.
- Orders declined 5 percent sequentially versus the first quarter.