What Happened?
Shares of office furniture manufacturer Steelcase (NYSE: SCS) jumped 13% in the pre-market session after the company reported an impressive fourth quarter 2024 results which blew past analysts' EPS expectations, while sales were in line.
What stood out was a big 12% jump in new orders in the Americas region, which management attributed to broad-based demand from large corporate and government clients.
Adding to the positive aspect, revenue and EPS guidance for the next quarter outperformed Wall Street's estimates. Steelcase guided for 5–9% organic revenue growth, indicating confidence in backlog conversion.
Zooming out, we think this was a good quarter with some key areas of upside.
The shares closed the day at $11.29, up 6.5% from previous close.
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What The Market Is Telling Us
Steelcase’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Steelcase and indicate this news significantly impacted the market’s perception of the business.
Steelcase is down 5.1% since the beginning of the year, and at $11.06 per share, it is trading 23.7% below its 52-week high of $14.49 from July 2024. Investors who bought $1,000 worth of Steelcase’s shares 5 years ago would now be looking at an investment worth $1,038.
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