-=Steelcase (SCS) reported earnings on Wed 20 June 18 (a/h)

Steelcase reports EPS in-line, revs in-line; guides Q2 EPS in-line

• Reports Q1 (May) earnings of $0.14 per share, in-linewith the Capital IQ Consensus of $0.14; revenues rose 2.6% year/year to $754 mln vs the $754.17 mln Capital IQ Consensus.
• Gross margin of 31.6% in the current quarter represented a decline of 170 basis points compared to the prior year and reflected mixed results across the segments
• Co issues in-line guidancefor Q2, sees EPS of $0.25-$0.30, excluding item, vs. $0.28 Capital IQ Consensus Estimate; sees Q2 revs of $865-$890 mln, which includes revenue from its Smith System Manufacturing acquisition, expected to close at the end of June. The Capital IQ consensus is $813.10 mln.
• Commentary: "We expect commodity cost increases to continue pressuring our gross margin for another quarter or two while these price adjustments take fuller effect. In addition, our revenue in the Americas over the same period is expected to include a growing mix of project business, including projects won at earlier price levels, which will impact our year-over-year gross margin comparisons..."