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Steelcase (SCS) to Report Q1 Earnings: What's in the Cards?

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Steelcase Inc. (SCS - Free Report) will report first-quarter fiscal 2020 results on Jun 19, after the bell.

The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with an average positive earnings surprise of 12.3%.

The stock gained 17.9% year to date, outperforming the 14.6% rally of the industry it belongs to.

How Things Are Shaping Up?

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $837 million, indicating an increase of 11% from the year-ago quarter’s actual figure. Revenues are likely to benefit from strong broad-based organic growth, driven by new products and partnerships with companies like West Elm. Acquisitions of AMQ, Smith System and Orangebox are also expected to benefit the top line.

Steelcase Inc. Revenue (TTM)

 

 

The consensus mark of earnings in the to-be-reported quarter stands at 19 cents, indicating year over increase of 35.7%. Revenue growth, cost reduction initiatives and price increases are the likely contributors to this expected growth.

What Our Model Suggests

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Steelcase has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat estimates.

FLEETCOR Technologies , with an Earnings ESP of +0.31% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Franklin Covey Co. (FC - Free Report) , with an Earnings ESP of +8.16% and a Zacks Rank #3.

Booz Allen Hamilton (BAH - Free Report) , with an Earnings ESP of +0.66% and a Zacks Rank #3.

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Steelcase Inc. (SCS) - free report >>

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