Lower Revenue and Guidance Lead to Significant Stock Drop

  • Steelcase shares fell after reporting lower-than-expected revenue in its fiscal second quarter
  • Revenue for the recent quarter was $855.8 million, missing Wall Street’s expectation of $864.2 million
  • Decreased ordering from large corporate customers and declines across major international markets impacted the quarter’s performance
  • Profit increased to $63.1 million from $27.5 million in the same period last year
  • Third-quarter revenue guidance is between $785 million and $810 million, lower than analysts’ expectation of $812.1 million
  • Forecasted per-share earnings for the third quarter are between 18 cents and 22 cents, below analysts’ expectations

Shares of Steelcase, an office-furniture company, fell by 11% after reporting lower-than-expected revenue in its fiscal second quarter. The company’s revenue for the recent quarter was $855.8 million, missing Wall Street’s expectation of $864.2 million. Decreased ordering from large corporate customers and declines across major international markets impacted the quarter’s performance. Profit increased to $63.1 million from $27.5 million in the same period last year. The company guided for revenue between $785 million and $810 million for its third quarter, lower than analysts’ expectation of $812.1 million. It also forecasted per-share earnings between 18 cents and 22 cents, below analysts’ expectations.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Steelcase’s financial performance in its fiscal second quarter, including revenue, profit, and guidance for the third quarter. It also includes relevant comparisons to analyst expectations. However, it lacks some context or background information on the company and industry trends that might help readers understand the significance of the results.
Noise Level: 4
Noise Justification: The article provides relevant financial information about Steelcase’s performance but lacks in-depth analysis or context on the reasons behind the decline in revenue and its potential impact on the company and industry.
Public Companies: Steelcase (SCS)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Steelcase stock price
Financial Rating Justification: The article discusses Steelcase’s lower-than-expected revenue and its impact on the company’s stock price, which affects financial markets by influencing investor decisions and the overall performance of the company.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text and it’s not the main topic.
Move Size: The market move size mentioned in the article is 11%.
Sector: All
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

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