The stock of Steelcase Inc. (SCS) lost value in the after-hours when the company announced their results for the 3rd quarter of fiscal year 2022 in a press release. The stock lost around 3% in its value in the after-hours to reach at $11.15 from the previously closed value. At the end of the last trading session the stock closed at $11.51. The volume of the stock traded in the last trading session was around 778.94K.
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Reason of the stock decline:
On 16th December, 2021 the company announced the results for their 3rd quarter of fiscal year 2022. Due to the supply chain disruption and inflation the company didn’t achieved their earning goals.
Highlight of the 3rd quarter of fiscal year 2022:
- The revenue of the company in the 3rd quarter was $738.3 million. In the same quarter of the last year the revenue was $617.5 million. This is an increase of around 20%
- The net income was reported to be $9.6 million. In the 3rd quarter of the previous year the net income was $2.1 million.
- The company order growth was 40% in this quarter.
- The gross margin was reported to be 27.6%.
- As of the third quarter the company had cash and cash equivalents of approximately $445.2 million. The total debt of the company was reported to be $482.9 million.
- In 3rd quarter the company purchased 1.8 million of Class A common stock worth of total $23.1 million.
- The company’s board of directors has decided $0.145 per share quarterly cash dividend which will be paid on or before 10th January, 2022.
Effect on the stock:
The company stock was hit by the news of financial report of 3rd quarter. The investors were quite reluctant in investing in the company’s stock. The company did not achieve its estimated results for the 3rd quarter of fiscal year 2022 due to which its stock lost value by 3%.
Conclusion: Due to the inflation and disruption of the supply chain caused by the corona virus new variant Omicron, the Steelcase Inc. (SCS) current performance didn’t matched its forecasted results. The company was expecting to achieve three times more of the current performance. The company also stated that the supply chain issues will remain the same in the 4th quarter as well.
