Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Will Steelcase Inc. (SCS) Keep Bouncing Back?

On Wednesday, Steelcase Inc. (NYSE:SCS) will release its latest quarterly results. The maker of business equipment has gone through a lot since the recession hit in 2008, but recently, the company has managed to claw back all of its losses from the financial crisis and trades near levels not seen in more than five years.

Steelcase Inc. (NYSE:SCS)

Steelcase Inc. (NYSE:SCS) makes furniture systems, focusing on large corporate customers as its main clientele. Yet with all the cost-cutting that’s been going on among the biggest companies in the world, one easy place to cut back is on high-end office furniture and that poses a substantial threat to the company going forward. Let’s take an early look at what’s been happening with Steelcase Inc. (NYSE:SCS) over the past quarter and what we’re likely to see in its quarterly report.

Stats on Steelcase

Analyst EPS Estimate $0.13
Change From Year-Ago EPS 0%
Revenue Estimate $689.93 million
Change From Year-Ago Revenue 2.2%
Earnings Beats in Past 4 Quarters 2

Source: Yahoo! Finance.

Can Steelcase take advantage of better times ahead?
In recent months, analysts have become less excited about Steelcase Inc. (NYSE:SCS)’s earnings prospects, cutting a nickel per share from their May-quarter views and almost twice that from their estimates for the full fiscal year. The stock, though, has kept pushing higher, Analysts have gotten less optimistic about Jabil’s earnings prospects recently, reducing their estimates for the May quarter by $0.08 per share and their full-year fiscal 2013 consensus by double that figure. That has pulled the stock back somewhat from its highs during the winter, although it’s down less than 3% from its mid-March levels.

Steelcase continues to deliver quality products to the marketplace. Last week, the company won five Best of NeoCon awards at the largest contract furnishings trade show in North America. With a variety of products ranging from what it calls “vertical intelligent architecture” and its Gesture line of chairs to specialized systems for health care and an innovative stool, Steelcase Inc. (NYSE:SCS) continues to come up with products that companies are willing to pay up for.

But the real test of the company’s success is whether businesses have the capacity to make big purchases like this, and it appears that investors throughout the space are starting to get more optimistic about a comeback. Herman Miller, Inc. (NASDAQ:MLHR) also trades near multiyear highs as it has managed to grow not just from improving business conditions but also with its purchase of Maharam Fabric, helping to complement its own furniture business. HNI Corp (NYSE:HNI), which makes office furniture as well as fireplaces, stoves, and inserts, recently returned to profitability, although its furniture segment were hit by a drop in government spending.

In Steelcase Inc. (NYSE:SCS)’s report, look for signs of how the company is doing on a competitive level against its peers. As conditions improve, it’ll be increasingly important for Steelcase to hold its own and try to take share away from its rivals in the industry.

The article Will Steelcase Keep Bouncing Back? originally appeared on and is written by Dan Caplinger.

Fool contributor Dan Caplinger and The Motley Fool have no position in any stocks mentioned. You can follow Dan on Twitter @DanCaplinger.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!