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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

<ul><li>Steelcase is expected to report 4QFY24, ended February 23, in mid- to late March.</li><li>We expect EPS of $0.22 on sales of $784 million. FactSet consensus is $0.21 on sales of $780 million.</li><li>Our focus in the coming quarter will be on margin and efficiencies. End demand in the sector is challenging and we don’t expect any change.</li></ul>

Steelcase is expected to report 4QFY24, ended February 23, in mid- to late March.We expect EPS of $0.22 on sales of $784 million. FactSet consensus is $0.21 on sales of $780 million.Our focus in the coming quarter will be on margin and efficiencies. End demand in the sector is challenging and we don’t expect any change.

Steelcase, Inc. - Re-Examining Estimates Ahead of Earnings Report in March

<ul><li>This note revises our estimates for Steelcase following its 3QFY24 earnings call.</li><li>In short, for 4QFY24, we up our margin assumption, moderate our revenue assumption slightly, and shave our adjusted EPS estimate by $0.01.</li><li>Steelcase reported strong margins and steady orders in the 3QFY24 on Tuesday evening.</li></ul>

This note revises our estimates for Steelcase following its 3QFY24 earnings call.In short, for 4QFY24, we up our margin assumption, moderate our revenue assumption slightly, and shave our adjusted EPS estimate by $0.01.Steelcase reported strong margins and steady orders in the 3QFY24 on Tuesday evening.

Steelcase, Inc. - Tweaking Estimates: Margins Improve, Sales Moderate

<ul><li>After Tuesday’s close, Steelcase reported 3QFY24 adjusted EPS of $0.30, ahead of our $0.25 estimate and consensus of $0.23.</li><li>Revenue came in lighter than expected at $778 million versus our $804 million estimate and consensus of $796 million.</li><li>Steelcase delivered another quarter of gross margin improvement at 32.4%, up 370 bps versus 3QFY23, and 46 bps above our estimate. </li></ul>

After Tuesday’s close, Steelcase reported 3QFY24 adjusted EPS of $0.30, ahead of our $0.25 estimate and consensus of $0.23.Revenue came in lighter than expected at $778 million versus our $804 million estimate and consensus of $796 million.Steelcase delivered another quarter of gross margin improvement at 32.4%, up 370 bps versus 3QFY23, and 46 bps above our estimate. 

Steelcase, Inc. - 3QFY24 Earnings: Margins Drive EPS Upside

<ul><li>Steelcase reports 3QFY24 results after market close today. We are expecting adjusted EPS of $0.25 on revenue of $804 million.</li><li>Consensus is EPS of $0.23 on revenue of $796 million.</li><li>Our estimate is at the high end of the revenue guidance and the midpoint of adjusted EPS guidance. </li></ul>

Steelcase reports 3QFY24 results after market close today. We are expecting adjusted EPS of $0.25 on revenue of $804 million.Consensus is EPS of $0.23 on revenue of $796 million.Our estimate is at the high end of the revenue guidance and the midpoint of adjusted EPS guidance. 

Steelcase, Inc. - Earnings After Close Today; Watching Margins, Order Trends

Thematic (Sector/Industry)

<ul><li>SCS and LZB both reported strong earnings. Steelcase gained 7.2% for the week after posting strong orders and margins in 1QFY25 with adjusted EPS of $0.16, beating consensus of $0.10 and our estimate of $0.11. LZB surged 12.4% after posting adjusted 4QFY24 EPS of $0.95 versus consensus of $0.70.</li><li>It was a mixed week for the Water Tower Research Furniture/Furnishings indexes.</li><li>The Commercial/Contract Furniture Index was up 3.3% for the week, while the Residential Manufacturers &amp; Suppliers Index was down 1.1% and the Home Goods Retailers Index was down 1.2%. </li></ul>

SCS and LZB both reported strong earnings. Steelcase gained 7.2% for the week after posting strong orders and margins in 1QFY25 with adjusted EPS of $0.16, beating consensus of $0.10 and our estimate of $0.11. LZB surged 12.4% after posting adjusted 4QFY24 EPS of $0.95 versus consensus of $0.70.It was a mixed week for the Water Tower Research Furniture/Furnishings indexes.The Commercial/Contract Furniture Index was up 3.3% for the week, while the Residential Manufacturers &amp; Suppliers Index was down 1.1% and the Home Goods Retailers Index was down 1.2%. 

Furniture/Furnishings Weekly - June 24, 2024

United States

Steelcase Inc. designs and manufactures products used to create high performance work environments.  The Company's products include office furniture, furniture systems, interior architectural products, technology products, seating, and related products and services.  Steelcase has operations in various countries.

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Steelcase Inc Cl A (SCS US)

Steelcase, Inc. - Re-Examining Estimates Ahead of Earnings Report in March

Steelcase is expected to report 4QFY24, ended February 23, in mid- to late March. We expect EPS of $0.22 on sales of $784 million. FactSet...

Water Tower Research

Steelcase, Inc. - Tweaking Estimates: Margins Improve, Sales Moderate

In short, for 4QFY24, we up our margin assumption, moderate our revenue assumption slightly, and shave our adjusted EPS estimate by $0.01.

Water Tower Research

Steelcase, Inc. - 3QFY24 Earnings: Margins Drive EPS Upside

After Tuesday’s close, Steelcase reported 3QFY24 adjusted EPS of $0.30, ahead of our $0.25 estimate and consensus of $0.23.

Water Tower Research

Steelcase, Inc. - Earnings After Close Today; Watching Margins, Order Trends

Steelcase reports 3QFY24 results after market close today. We are expecting adjusted EPS of $0.25 on revenue of $804 million. Consensus is EPS of...

Water Tower Research

Furniture/Furnishings Weekly - June 24, 2024

SCS and LZB both reported strong earnings. Steelcase gained 7.2% for the week after posting strong orders and margins in 1QFY25 with adjusted EPS...

Water Tower Research

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