Steelcase Inc. saw a decline in its stock price following the announcement of its second-quarter financial results. The company's quarterly earnings of 39 cents per share exceeded the analyst consensus estimate of 37 cents, while its revenue of $855.8 million fell short of the expected $864.1 million by 0.96%. The growth in the Americas segment was driven by increased volume from large corporate, education, and government clients, whereas the International business suffered due to ongoing weakness in China.
Sara Armbruster, the president and CEO of Steelcase, expressed optimism about the company's performance in the quarter, highlighting a 26% growth in adjusted earnings and a 3% increase in orders in the Americas. The strong results in the education sector were attributed to the company's strategy to diversify its customer base and market offerings. Looking ahead, Steelcase projects third-quarter revenue to be within the range of $785 million to $810 million, with adjusted earnings expected to fall between 21 cents and 25 cents per share. As a result of the financial report, Steelcase shares experienced a significant drop of 10.21% after hours, trading at $12.67 at the time of the publication.