Steelcase Inc (NYSE:SCS) stock was up around 4% in Wednesday’s early deals after the office furniture firm gave a more upbeat outlook amid the trend for back-to-office mandates across many business sectors in 2023.
As more employers revert, either to full-time or hybrid office work, the company said it was “optimistic” about improving demand for its chairs, desks and office storage products.
"Through the first half of the year, although project activity has softened, we've seen strong growth in our continuing business as customers make investments to refresh their existing spaces,” chief executive Sara Armbruster said in a statement.
She added: “We delivered better than expected revenue and earnings in a dynamic environment due primarily to continued improvement in our order fulfillment patterns and pricing benefits.”
Steelcase reported second quarter revenue of $854.6 million, leading to $27.5 million or 23 cents per share, beating prior-year comparatives of $19.6 million and 17 cents respectively.
Wall Street analysts meanwhile forecast 20 cents per share of earnings on $829 million of revenue.
Chief financial officer Dave Sylvester, meanwhile, talked up the positive impacts of the company’s international restructuring.
"As the projected benefits of those actions become more fully realized in the third and fourth quarters and volume is anticipated to seasonally improve, we expect our adjusted operating results for the second half of the year in International to approach breakeven," Sylvester said.
Looking ahead, Steelcase eyes third-quarter revenue between $780 million and $805 million, which was shy of the $819 million penciled in by analysts, while earnings guidance was pitched by the company in a range between $23 cents to $27 cents, comfortably above consensus forecasts of 19 cents.
In New York, Steelcase shares were up 4.2% changing hands at $9.18 each.