SCS - Steelcase shares down after mixed Q4 results and weak Q1 outlook

Steelcase (SCS -7.8%) shares plunged after mixed Q4 results as the company sees Q1 EPS below consensus. Revenues in the Americas grew 8% and EMEA up 18%. Orders increased 27% Y/Y, reflecting the investments customers are making in their workplaces as they increasingly invite their employees back to the office. Gross margin rate down 230 bps Y/Y to 26.1%. At the end of the quarter, backlog of customer orders was approximately $787M, +77% Y/Y. The company expects supply chain disruptions and inflationary pressures to continue in Q1. The company expects 1Q diluted EPS of -$0.15 to -$0.20 vs. consensus of -$0.05 and revenue in the range of of $680M to $705M vs. consensus of $701.40M. For FY2023, the company guides diluted EPS in the range of $0.50 to $0.70 vs. consensus of $0.61; organic revenue growth of +15% to +20%. The company is targeting net income in the second quarter which

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Steelcase shares down after mixed Q4 results and weak Q1 outlook