Latest news with #Armbruster
Yahoo
26-06-2025
- Business
- Yahoo
SCS Q2 Deep Dive: Large Corporate Demand Offsets Education and International Weaknesses
Office furniture manufacturer Steelcase (NYSE:SCS) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 7.1% year on year to $779 million. The company expects next quarter's revenue to be around $875 million, close to analysts' estimates. Its non-GAAP profit of $0.20 per share was 50% above analysts' consensus estimates. Is now the time to buy SCS? Find out in our full research report (it's free). Revenue: $779 million vs analyst estimates of $759.9 million (7.1% year-on-year growth, 2.5% beat) Adjusted EPS: $0.20 vs analyst estimates of $0.13 (50% beat) Adjusted EBITDA: $64.8 million vs analyst estimates of $52.33 million (8.3% margin, 23.8% beat) Revenue Guidance for Q3 CY2025 is $875 million at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q3 CY2025 is $0.38 at the midpoint, below analyst estimates of $0.41 Operating Margin: 4.5%, up from 3.3% in the same quarter last year Market Capitalization: $1.22 billion Steelcase's second quarter was shaped by robust demand from large corporate customers, particularly in the Americas, which offset challenges in the education and government sectors as well as ongoing international softness. Management credited the company's 7% year-on-year revenue growth to strong order activity from technology and financial services clients, along with the successful launch of new workplace solutions. CEO Sara Armbruster emphasized, "Our largest clients are seeking our help to reshape space to support collaboration and connection," highlighting the evolving needs driving recent project wins. However, the company faced headwinds from reduced education sector spending, influenced by changes in federal funding policies, and continued macroeconomic pressures in Germany and France. Looking ahead, Steelcase's guidance reflects both confidence in continued corporate sector momentum and caution about lingering headwinds. Management expects growth from large organizations to persist, supported by recent product launches tailored to hybrid work and workplace transformation. However, CFO Dave Sylvester noted that ongoing tariff costs, uncertainty around federal policies affecting education spending, and restructuring efforts in Europe may limit profitability improvements in the near term. As Armbruster stated, Steelcase remains focused on executing its strategy while navigating a 'dynamic environment of evolving tariff and trade policies.' Management identified strong order growth from large corporate clients, successful product launches for hybrid workspaces, and targeted cost reduction initiatives as central to this quarter's performance. Large corporate demand: Orders from major technology and financial services clients outpaced expectations, driven by companies investing in workplace transformation for hybrid and collaborative work models. Armbruster described these projects as a direct response to evolving needs around 'collaboration and privacy.' Education and government declines: The education sector faced notable order reductions due to the expiration of federal ESSER (Elementary and Secondary School Emergency Relief) funds and broader uncertainty in future public funding, leading to budget adjustments and delayed projects in K-12 districts. International segment challenges: Germany and France continued to experience weak demand, particularly from small and midsized businesses impacted by economic softness. Management has initiated restructuring efforts, including workforce reductions and negotiations with European unions, aiming to restore profitability in these markets. Product innovation focus: Steelcase unveiled new offerings such as the expanded Ocular collection and Jean Nouvel Seating Collection at Design Days in Chicago, targeting needs for hybrid collaboration and flexible office environments. These launches generated strong customer feedback and contributed to recent project wins. Cost and margin management: The company achieved its twelfth consecutive quarter of gross margin expansion, attributed to operational efficiencies and cost controls. Tariff and inflation pressures were partially offset by pricing actions and ongoing process improvements. Steelcase expects future results to hinge on sustained corporate demand, effective cost management, and the impact of tariffs and funding policy shifts. Corporate sector resilience: Management anticipates continued strength from large companies as they invest in updating office spaces for hybrid work, with recent feedback from events like Design Days suggesting ongoing demand for collaborative and flexible workspace solutions. Education and government uncertainty: The outlook for education-related sales remains cautious due to the phase-out of federal funding and shifting budget priorities, which could dampen seasonal revenue peaks typically seen in the summer months. International restructuring and cost control: Steelcase is executing cost-saving measures in Europe, including workforce reductions and facility consolidations, to adapt to weak demand environments. Management believes these actions are necessary to restore profitability even if volumes remain subdued. In coming quarters, the StockStory team will be monitoring (1) the pace of large corporate office space investments and their contribution to order growth, (2) the effectiveness of cost-cutting and restructuring measures in Europe, and (3) stabilization or further declines in education sector demand as public funding policies shift. Progress on new product adoption and success in offsetting tariff and inflation impacts will also be important markers for Steelcase's continued recovery. Steelcase currently trades at $10.51, down from $10.63 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
03-06-2025
- Health
- Yahoo
Tips for protecting teen drivers during 100 deadliest days
AUSTIN (KXAN) — The period between Memorial Day and Labor Day typically sees a spike in deadly crashes involving younger drivers, according to the American Automobile Association, or AAA. It's become known as the '100 deadliest days' for teen driving. AAA reports teen drivers are nearly three times more likely than drivers aged 20 and older to be killed in a crash. Daniel Armbruster, a spokesperson for AAA in Texas and New Mexico, said it's in part due to the inexperience of younger drivers. 'But also we know this increase that we see in summer time is because of the fact that kids are out of school. They have more freedom and less supervision, and so they tend to behave in a way that is more risky behind the wheel,' Armbruster said. He highlighted speeding, impaired driving and distracted driving as some of the top factors contributing to crashes. According to AAA, 60% of all teen crashes involve a form of distraction, from smart phone use and texting to other passengers in the car. 'Talking, conversations can occur when you have several young people in a car, and the driver can become distracted,' Armbruster said, emphasizing the need for the state's graduated driver's licensing law. It restricts the number of people in the vehicle allowed with a teen driver to one person under the age of 21 that is not a family member. AAA also offers 'Dare to Prepare' workshops for teens and their parents to raise awareness. The free, 75-minute interactive or in-person workshop highlights the roles and responsibilities of driving, how to pick a safe vehicle and what to look for in a good driving school. Armbruster serves as an instructor for some of these workshops. 'A lot of times, teens come in, and you can see it on their face, right? 'Oh, a workshop my parent made me come to.' But they leave with a gratitude because they've received a lot of information that is helpful in not only saving their lives, but also the lives of everyone on the road,' he said. Across the country, 13,135 people died in a crash involving a teen driver between 2019-2023, according to a AAA review of crash data from the National Highway Traffic Safety Administration. In Texas alone, 1,463 people died in teen crashes during that same period. Approximately 30% of those deaths occurred during the 100 Deadliest Days between Memorial Day and Labor Day. AAA's review went on to show that, on average, eight people are killed per day in teen-involved driving crashes in the summer, compared to seven per day during the rest of the year. In his experience with the Dare to Prepare workshops, Armbruster said the knowledge is as important for parents as it is for teens. 'If you are speeding, if you are driving distracted, they are more likely to pick that up,' he noted. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
25-05-2025
- Automotive
- Yahoo
East Texas gas prices fall ahead of Memorial Day
TYLER, Texas (KETK) – AAA has reported that the average gas price in Texas has fallen by five cents since last week and is down 39 cents when compared to this time last year. East Texas Gas Prices 'Lower gas prices will be welcome news for the record number of drivers heading out of town for the long holiday weekend,' AAA said in a press release on Thursday. 'Gas prices haven't been this low over Memorial Day since 2021 when the statewide average was $2.71. A record 3.2 million Texans are expected to drive 50 miles or more for leisure, this Memorial Day weekend.' According to AAA's weekend gas watch, Longview's gas prices are down 40 cents from last year, Texarkana's gas prices are down 42 cents from last year and Tyler's gas prices are down 36 cents from this time last year. AAA Texas spokesperson Daniel Armbruster said East Texans can thank supply and demand for these low prices. 'Supply and demand are playing a role in this year's lower pump prices as crude oil supply is currently surpassing demand,' Armbruster stated. To learn more, visit AAA's gas resources page online. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
23-05-2025
- Yahoo
AAA: What Texans can expect for Memorial Day travel
TYLER, Texas (KETK) — Memorial Day weekend 2025 is projected to see 3.7 million Texans travel from May 22-26; here are the changes AAA expects to see regarding gas prices, travel costs and traffic. LIST: Memorial Day events in East Texas Memorial Day is a sacred holiday that is dedicated to honoring the men and women who lost their lives while serving in the U.S. military. Many Texans will honor their fallen service members by enjoying a day off from work at the beach, local park or just having a classic cookout in the backyard. No matter how Texans choose to celebrate, chances are they will be doing some traveling beforehand. This year is going to see some travel cost fluctuation with an 8% decrease in car rental prices and a 2% increase in airfare charges. Tyler residents have noticed an increase in gas prices over the last week, averaging around $2.64 a gallon, but this is actually cheaper than last year's Memorial Day prices, according to AAA Texas spokesperson Daniel Armbruster. 'Prices are about 35 cents cheaper on average per gallon in East Texas going into this Memorial Day,' Armbruster said. SFA forced to cut several athletic programs due to ongoing budget concerns Even though over 300,000 Texans will travel through the air and 160,000 will move by train, bus or cruise, 3.2 million drivers will still be on the road this weekend. For those traveling through popular East Texas adjacent areas such as Houston, Austin or San Antonio, Armbruster recommends leaving earlier than everyone else. 'Your afternoon and evenings, especially around major metropolitan areas are going to be busier, the best time to leave is going to be in the morning, likely before noon,' Armbruster said.' Read this other article to learn more about how to be prepared for unexpected car trouble this weekend. . Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
10-04-2025
- Business
- Yahoo
New Mexico gas prices drop amid falling crude oil costs, economic uncertainty
Apr. 10—New Mexico gas prices dropped eight cents this week, which comes with the decline of crude oil prices in the wake of economic uncertainty at the federal level. AAA New Mexico Weekend Gas Watch reported Thursday the statewide average price for a gallon of unleaded fuel was $2.99. In Albuquerque, the state's largest city, gas is averaging $3.01, a decrease from $3.11 a week ago. Santa Fe-area residents are paying the cheapest amount for gas, as a gallon of fuel is averaging $2.90, according to AAA, a 17-cent drop from the week prior. Farmington residents are paying the most; a gallon of gas in that area of the state is averaging $3.07. Las Crucens are paying $2.93. AAA spokesperson Daniel Armbruster noted in a news release that the price of fuel is dropping during a time of year when it typically goes up. He said "supply and demand" is the main reason for the dip, adding that OPEC+ announced it's increasing oil production in May by more than 400,000 barrels a day. "Crude oil prices have dipped below $60 per barrel for the first time since February 2021, putting downward pressure on retail gas prices," Armbruster said in a statement. "Because crude oil accounts for about half the cost of a gallon of gasoline, this decline is a key factor driving lower prices at the pump."
