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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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<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

<ul style="list-style-type: disc;"><li><p>We are raising our estimates following an upbeat conference call and follow-up with SCS management.</p></li><li><p>Our adjusted 3QFY24 estimate, now at $0.25, is up from $0.21 and at the midpoint of guidance.</p></li><li><p>Full-year FY24 guidance is now $0.80-0.90. Our new FY24 EPS estimate is $0.88, up from $0.71 pre-release and near the top end of guidance.</p></li></ul>

We are raising our estimates following an upbeat conference call and follow-up with SCS management.Our adjusted 3QFY24 estimate, now at $0.25, is up from $0.21 and at the midpoint of guidance.Full-year FY24 guidance is now $0.80-0.90. Our new FY24 EPS estimate is $0.88, up from $0.71 pre-release and near the top end of guidance.

Steelcase, Inc. - Early 3Q Order Flow Rebounding; Raising Estimates

<div><div><div><div><ul style="list-style-type: disc;"><li><p>Post Tuesday’s close, Steelcase reported 2QFY24 adjusted EPS of $0.31 and revenue of $855 million, both better than consensus of $0.20 and $829 million.</p></li><li><p>Deliveries accelerated as supply chain constraints abated. Pricing and margin improvements gained traction, aiding sales and buoying gross margin to 33.2%, up 411 bps versus 2QFY23 and 195 bps above our estimate, which we felt was aggressive.</p></li><li><p>Steelcase delivered a 6.2% 2QFY24 adjusted operating margin, ~+2% Y/Y and 170 bps above our estimate.</p></li></ul></div></div></div></div>

Post Tuesday’s close, Steelcase reported 2QFY24 adjusted EPS of $0.31 and revenue of $855 million, both better than consensus of $0.20 and $829 million.Deliveries accelerated as supply chain constraints abated. Pricing and margin improvements gained traction, aiding sales and buoying gross margin to 33.2%, up 411 bps versus 2QFY23 and 195 bps above our estimate, which we felt was aggressive.Steelcase delivered a 6.2% 2QFY24 adjusted operating margin, ~+2% Y/Y and 170 bps above our estimate.

Steelcase, Inc. - 2QFY24 Beats on Strong Deliveries; Order Trends Still Pressured

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. - 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

Steelcase, Inc. - Early 3Q Order Flow Rebounding; Raising Estimates

We are raising our estimates following an upbeat conference call and follow-up with SCS management. Our adjusted 3QFY24 estimate, now at $0.25, is...

Water Tower Research

Steelcase, Inc. - 2QFY24 Beats on Strong Deliveries; Order Trends Still Pressured

Post Tuesday’s close, Steelcase reported 2QFY24 adjusted EPS of $0.31 and revenue of $855 million, both better than consensus of $0.20 and $829...

Water Tower Research

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