Steelcase (SCS) Falls 5% Following Q2 Miss Amid Supply Chain Issues

Steelcase (NYSE: SCS) shares were trading around 5% lower after-hours following the company’s reported Q3 results, with EPS coming in at $0.21, missing the Street estimate of $0.24.

Quarterly revenue fell 11% to $724.8 million (vs. consensus of $763.62 million) impacted by supply chain disruptions, which are expected to persist into Q3.

"A significant number of industry-wide supply chain disruptions have caused us to extend lead times and delay some shipments, which negatively impacted our second quarter revenue," CEO Jim Keane stated. On the positive side, they have not experienced any significant order cancellations as a result of the delays.

Steelcase noted its third price increase of fiscal 2022 was announced in response to continued significant inflationary pressures.

The company provided a Q3 outlook, expecting EPS to range from $0.07 to $0.11 (vs. consensus of $0.10) and revenue to be between $755 and 785 million (vs. consensus of $720.8 million). On its outlook, the company noted that the backlog of customer orders was approximately $715 million, up 22% from the prior year.

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