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Feb 25, 2022
Steelcase Q4 2022 Earnings Report
Steelcase reported mixed Q4 2022 results with revenue increase offset by net loss.
Key Takeaways
Steelcase reported an 11% increase in revenue for the fourth quarter, reaching $753.1 million. However, the company experienced a net loss of $2.2 million, or $0.02 per share, compared to a net income of $6.6 million, or $0.06 per share, in the prior year. The revenue growth was broad-based across all segments.
Revenue increased by 11% compared to the prior year, driven by growth across all segments.
Orders grew by 27% compared to the prior year, reflecting customer investments in workplaces.
Operating income decreased due to lower gross margin and higher operating expenses.
Gross margin decreased by 230 basis points compared to the prior year, impacted by inflation and supply chain disruptions.
Forward Guidance
The company expects first quarter fiscal 2023 revenue to be in the range of $680 to $705 million and a loss per share of between $0.15 to $0.20. For fiscal 2023 the company is targeting organic revenue growth of 15 to 20 percent and earnings per share of between $0.50 to $0.70.
Positive Outlook
- Targeting net income in the second quarter which would more than offset the first quarter net loss driven by seasonally higher revenue and higher pricing benefits.
- Expect to realize more of the benefits from the momentum we've been seeing in our order patterns
- Pricing actions catch up with inflation
- Impacts from supply chain disruptions abate
- Remained focused on the changing needs of people and organizations through our research
Challenges Ahead
- Supply chain disruptions are expected to continue.
- Projected inflation, net of pricing benefits, of approximately $10 million as compared to the prior year
- Projected operating expenses of between $195 to $200 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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