$SCS To Keep Rallying After Q3 Beat

2019년 12월 19일

SCS made new 52-week highs after posting a strong Q3. Judging from the technical breakout, we believe this rally will continue.

Steelcase (SCS +16.9%) Q3 revenue increased 6% Y/Y to 955M, led by strong growth in the Americas on favorable timing of shipments, in part due to the timing of the U.S. Thanksgiving holiday.

Operating margin improves ~290bps to 7.9%, with gross margin up 220bps to 33.1% driven by pricing benefits, lower commodity costs, and higher absorption of fixed costs, partially offset by unfavorable business mix.

Steelcase expects FY2020 diluted EPS between $1.41 to $1.45, including Q4 estimate of $0.30 to $0.34.

Forecasts FY2020 revenue to be ~3.7B and Q4 sales in the range of 905M to 930M.

Steelcase Inc. manufactures and sells integrated furniture settings, user-centered technologies, and interior architectural products. It operates through Americas, EMEA, and Other Category segments. The company's furniture portfolio includes panel, fence and beam-based furniture systems, storage products, fixed and height-adjustable desks, benches, and tables, as well as complementary products, including worktools. Its seating products comprise ergonomic task chairs; seating for collaborative or casual settings; and specialty seating for specific vertical markets, such as healthcare and education. The company's interior architectural products include full and partial height walls and architectural pods. It also provides textiles, wall coverings, and surface imaging solutions for architects and designers; and ceramic steel surfaces for use in various applications, including static whiteboards and chalkboards through third party fabricators and distributors, as well as workplace strategy consulting, data-driven space measurement, lease origination, furniture and asset management, and hosted event services. The company markets and sells its products to corporate, government, healthcare, education, and retail customers under the Steelcase, Coalesse, Turnstone, Smith System, AMQ, Orangebox, Designtex, and PolyVision brands. It distributes its products and services through a network of independent and company-owned dealers, as well as directly to end-use customers. The company was founded in 1912 and is headquartered in Grand Rapids, Michigan.

As always, use protective stops and trade with caution.

Good luck to all!