Steelcase (SCS) drops 10% after revenue miss

Steelcase (NYSE: SCS) shares fell 10% in early Wednesday trade after the company reported weaker-than-expected sales for the third quarter.

Steelcase anticipates adjusted earnings per share for the fourth quarter to range between 19c and 23c, which is in line with the consensus estimate of 20c. The projected revenue for the same period is $765 million to $790 million, below the consensus estimate at $789.3 million.

In the recently reported third quarter, Steelcase recorded revenue of $777.9 million, reflecting a 5.9% year-on-year decrease and missing the consensus of $796.5 million. However, adjusted EPS for Q3 exceeded expectations, reaching 30c compared to the estimated 22c.

"Our 16 percent year-over-year growth in the Americas was driven by our large corporate customers, which we believe is representative of the strength of our offering as companies invest in their workplaces to support new ways of working," the company said.

By Senad Karaahmetovic

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