Steelcase reports earnings beat

Steelcase Inc. (NYSE: SCS) reported better-than-expected earnings for its second quarter. The company issued strong Q3 and FY19 earnings guidance.

The company, based in Grand Rapids, Michigan, reported second quarter revenue of $875.8 million and net income of $49.1 million, or diluted earnings of $0.41 per share. In the prior year, Steelcase reported $775.6 million of revenue and net income of $36.9 million, or diluted earnings of $0.31 per share.

Said CEO Jim Keane, "We are proud of delivering very strong revenue and earnings growth this quarter, and we're optimistic about the opportunities we see to drive additional growth," said Jim Keane, president and CEO.

"The acquisitions of Smith System and Orangebox, as well as our new partnership with West Elm and broadened partnership with Bolia, are part of the exciting expansions of our offerings that help support our customers' needs in a changing workplace."

Current quarter operating income of $67.9 million (or 7.8% of revenue) increased by $15.7 million compared to operating income of $52.2 million (or 6.7% of revenue) in the prior year. The Americas reported an increase of $21.7 million driven by the $85.6 million increase in revenue.

Current quarter results included a $7.5 million gain from the sale of property, as well as warranty, product liability and workers' compensation costs that were $5.3 million lower than the prior year.

Share prices vaulted $2.53, or 15.6%, to $18.68 early Friday, within a 52-week trading range of $13.10 to $16.20.