Why Steelcase Stock Tanked After-Hours
Portfolio Pulse from Ryan Gustafson
Steelcase Inc. (NYSE:SCS) stock fell in after-hours trading following the release of their mixed Q3 financial results. While adjusted earnings per share of $0.30 exceeded analyst estimates of $0.23, revenue of $777.9 million fell short of the expected $796.425 million. The company saw a 6% decline in revenue compared to the previous year but reported a 15% increase in orders. Steelcase anticipates Q4 adjusted earnings per share to be between $0.19 and $0.23, with revenue projections of $765 million to $790 million, compared to an estimate of $789.05 million. The company's liquidity improved, reaching $424.6 million.
December 19, 2023 | 10:16 pm
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Steelcase reported mixed Q3 results with earnings beating estimates but revenue falling short. The stock experienced a 9.77% drop in after-hours trading.
The negative stock price reaction in after-hours trading is likely due to the revenue miss, which is a critical factor for investors. Despite the earnings beat, the revenue shortfall and cautious Q4 outlook could overshadow the positive aspects of the report, leading to a bearish short-term sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100