| "NEW YORK (Reuters) - Steelcase Inc. (SCS), the world's biggest office furniture maker, said on Thursday quarterly earnings tripled, helped by growth in its international business. |
| Fourth-quarter net income rose to $29.3 million, or 20 cents a share, from $9.3 million, or 6 cents a share, a year ago. |
| Revenue rose 5.4 percent to $779 million. |
| The Grand Rapids, Michigan-based company said it expects first-quarter earnings of 15 cents to 20 cents per share including special items. |
| The company sees first-quarter revenue up 6 percent to 10 percent." |
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Net income includes 11.6M in "ex-items" or 40% of the net income item is "stuff". You don't see that in the release, nor do you see the anomalous income tax rate.
Now, it really doesn't matter what I think. The market often does something quite different than what I think. But never buy or sell a stock off of the headline number. Read the company's release, not the headline. One of the most profitable stock purchases I ever made was BUCY. The stock was trading down, but I could see that their backlog had increased tremendously. Well as soon as the conference call started, the stock went ballistic.
SC's operating income was quite strong, but (1)in a slowing economy, (2) the juice that they've already received from international income, and (3) a resorting back to normal income tax rates, I'm guessing that they will not see these types of results in the coming year.
3 comments:
Nice comment. Doesn't hurt that office furniture is one of the first areas to get hit in recession.
The fact that it's a schitty business in the first place doesn't hurt.
Ummm... "doesn't hurt, either."
Going to have to start variegating my cliches....
Jake, I'll be last person to correct your grammar--your meaning was clear.
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