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Investing.com - Benchmark reiterated its Buy rating and $16.00 price target on Steelcase (NYSE:SCS) following the office furniture maker’s first-quarter fiscal 2026 results released this week. According to InvestingPro analysis, the stock appears undervalued, trading at an attractive P/E ratio of 10.2x with a solid EBITDA of $201.2 million in the last twelve months.
The company exceeded consensus expectations for revenue, EBITDA, and earnings per share in the quarter. Large corporate customers in the Americas segment drove performance with orders increasing approximately 10% year-over-year, which helped offset headwinds in government and education markets related to federal funding. InvestingPro data reveals strong financial health indicators, with liquid assets exceeding short-term obligations and a comfortable current ratio of 1.65.
International operations showed mixed results with weakness in France and Germany counterbalanced by growth in China, India, and the UK. The international segment reported modest gains with revenue and orders increasing approximately 1% year-over-year.
Steelcase provided second-quarter fiscal 2026 guidance that aligned with market expectations while maintaining its full-year outlook unchanged. The education market, typically a strong seasonal contributor to orders in the first quarter, faced challenges during the period.
Benchmark maintained its earnings per share estimates for fiscal years 2026 and 2027, noting that the broader return-to-office trend remains on track despite varying performance across different market segments.
In other recent news, Steelcase Inc . reported financial results for the first quarter of fiscal year 2026, exceeding market expectations. The company achieved an earnings per share (EPS) of $0.20, surpassing the anticipated $0.14, and reported revenue of $779 million, which was above the forecast of $762.35 million. This marked a 42.86% earnings surprise and a 2.18% revenue surprise. The Americas region was a strong performer, with a 9% revenue growth, despite challenges in Germany and France. Steelcase also announced a projected revenue range for the second quarter between $860 million and $890 million, with an adjusted EPS forecast of $0.36 to $0.40. Analysts from Benchmark noted the company’s continued focus on workplace transformation and strategic growth areas. Steelcase’s CEO, Sarah Armbruster, highlighted the evolving nature of work and the company’s commitment to adapting to these changes. The company is closely monitoring potential tariff changes that could affect future performance.
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