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Water Tower Research

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.

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Equity Bottom-Up

<ul><li>We are publishing new estimates for our Steelcase economic model after its solid 4QFY24 earnings.</li><li>Adjusted EPS of $0.23 beat our estimate as well as consensus. Revenue of $775.2 million modestly missed estimates.</li><li>1QFY25: We tweaked our non-GAAP (adjusted) EPS estimate to $0.11 ($0.10 previously).</li></ul>

We are publishing new estimates for our Steelcase economic model after its solid 4QFY24 earnings.Adjusted EPS of $0.23 beat our estimate as well as consensus. Revenue of $775.2 million modestly missed estimates.1QFY25: We tweaked our non-GAAP (adjusted) EPS estimate to $0.11 ($0.10 previously).

Steelcase, Inc. - Tweaking FY25 Estimates; Encouraged by Orders and Cash Flow

<ul><li>After the close Wednesday, Steelcase reported 4QFY24 non-GAAP adjusted EPS of $0.23, ahead of our $0.22 estimate and consensus of $0.21.</li><li>4QFY24 global revenue was $775 million, modestly missing our estimate by ~$9 million.</li><li>FY24 non-GAAP adjusted EPS was $0.93, up from $0.56 in FY23, and revenue was $3.16 billion, down 2.6%.</li></ul>

After the close Wednesday, Steelcase reported 4QFY24 non-GAAP adjusted EPS of $0.23, ahead of our $0.22 estimate and consensus of $0.21.4QFY24 global revenue was $775 million, modestly missing our estimate by ~$9 million.FY24 non-GAAP adjusted EPS was $0.93, up from $0.56 in FY23, and revenue was $3.16 billion, down 2.6%.

Steelcase, Inc. - 4Q Results; Guidance Roughly In Line

<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

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.

Steelcase Inc Cl A (SCS US)

Steelcase, Inc. - Tweaking FY25 Estimates; Encouraged by Orders and Cash Flow

We are publishing new estimates for our Steelcase economic model after its solid 4QFY24 earnings. Adjusted EPS of $0.23 beat our estimate as well...

Water Tower Research

Steelcase, Inc. - 4Q Results; Guidance Roughly In Line

After the close Wednesday, Steelcase reported 4QFY24 non-GAAP adjusted EPS of $0.23, ahead of our $0.22 estimate and consensus of $0.21.

Water Tower Research

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