Earnings Preview for Steelcase

On Wednesday, June 23, Steelcase SCS will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Steelcase management projections, analysts predict EPS of $0.31 on revenue of $554.87 million. In the same quarter last year, Steelcase reported a loss per share of $0.18 on revenue of $482.80 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 72.22% decrease for the company. Revenue would be up 14.93% from the same quarter last year. Here is how the Steelcase's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Steelcase were trading at $14.42 as of June 21. Over the last 52-week period, shares are up 22.45%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Steelcase is scheduled to hold the call at 08:30:00 ET and can be accessed here.