Shares of office furniture maker Steelcase (SCS - Get Report) jumped on Friday after the company posted second-quarter earnings and revenue numbers that exceeded analysts' forecasts, thanks to improved profit margins and lower commodities prices.
Shares of Steelcase were up 8.6% to $18.18 in trading on Friday after the Grand Rapids, Mich.-based company said it earned $60.5 million, or 50 cents a share, in its fiscal second quarter vs. $49.1 million, or 41 cents a share, in the comparable year-earlier quarter.
Analysts polled by FactSet had been expecting earnings of 43 cents a share. Revenue came in at $998 million, up from $875.8 million a year ago and above FactSet consensus estimates of $940.8 million.
Our team pushed the boundaries of materials science to create SILQ, a chair that's more organism than machine. We're delighted to announce SILQ as an honoree of the @FastCompany 2019 #FCDesignAwards. https://t.co/WKS2DpDdUx pic.twitter.com/D0EZAhGYDG— Steelcase (@Steelcase) September 9, 2019
The company attributed strong sales in the Asia-Pacific region as well as improved margins and lower commodities costs for the quarterly gains.
"The outlook in our industry remains positive," CEO Jim Keane said in a statement. "We believe there is significant potential to expand our earnings by continuing to improve our profitability in EMEA, leveraging our broadened product portfolio and delivering on the value creation plans for our acquisitions."
Steelcase said it still expects fiscal third-quarter revenue in the range of $920 million to $945 million, which would represent 2% to 5% growth. The company also said it was on track to report third-quarter per-share earnings of between 33 cents and 37 cents, in line with current consensus estimates of 35 cents.