Steelcase Beats Q2 Views, Shares Rise

Shares of

surged more than 3 percent in after-hours trading after the company reported better-than-expected earnings for the second quarter. The Grand Rapids, Michigan-based company posted quarterly net income of $37.2 million, or $0.30 per share, compared to $30.5 million, or $0.24 per share. Excluding restructuring costs, the company's adjusted earnings came in at $0.35 per share. Its revenue surged to $819.0 million from $786.7 million. However, analysts were expecting a profit of $0.32 per share on revenue of $796.60 million. The average estimate among 7 Estimize users was for earnings of $0.33 per share and revenue of $795.14 million. Its operating income surged to $60.1 million from $52.8 million. Steelcase's board declared a cash dividend of $0.1125 per share. "Our adjusted operating margin reached a new 15 year high and was led by the Americas, which posted a margin of 15 percent in the second quarter," said Jim Keane, president and CEO. "This was a remarkable quarter for the Americas, as the full benefits of the long-term investments we made in the past to optimize our footprint combined with great performance by our people in sales, marketing and operations to deliver more value for our customers and capture more value for our shareholders." Steelcase projects Q3 adjusted earnings of $0.31 to $0.35 per share, versus analysts' estimates of $0.32 per share. The company expects Q3 revenue of $800 to $820 million, versus expectations of $811.60 million. Steelcase shares gained 3.72 percent to $18.98 in the after-hours trading session.