NEW YORK ( TheStreet) -- Shares of Steelcase (SCS - Get Report) gained ground in late trades on Wednesday after the Grand Rapids, Mich.-based office furniture maker trounced Wall Street's profit view for its latest quarter and gave a strong revenue forecast.
The company reported earnings of $7.5 million, or 6 cents a share, for its fiscal first quarter ended May 31 as revenue jumped 18% year-over-year to $639.4 million. On an adjusted basis, excluding restructuring costs, Steelcase said it earned 10 cents a share in the three-month period.
The average estimate of analysts polled by Thomson Reuters was for a profit of a nickel per share in the May quarter on revenue of $589.3 million.
""Customers are responding very well to our insight-led solutions for the interconnected workplace," said James Hackett, Steelcase's president and CEO, in a statement. "By staying invested in multiple growth initiatives during the worst of the recession, we established a strong foundation for the revenue growth which occurred across all of our segments again this quarter."The stock was last quoted at $11, up 5.8%, on volume of around 100,000, according to Nasdaq.com. Based on a regular session close at $10.40, the shares were basically flat so far in 2011. For its fiscal second quarter ending in August, Steelcase said it expects revenue of between $670 million and $695 million with earnings forecast between 6 and 10 cents a share, including restructuring costs of 9 cents a share. The current average analysts' view calls for earnings of 12 cents a share on revenue of $634.1 million in the August quarter. Analyst estimates typically exclude restructuring costs. "We are at an important intersection. While the broader economic recovery remains challenged by a variety of headwinds, many of our customers are facing the realities of deferred spending during a decade in which various forces are having exponential consequences on their work environments," Hackett said of the company's outlook. "We believe our research partnerships and insight-led approach to product development and space applications represent a significant competitive advantage for our company."