Office furniture maker Steelcase’s (SCS) shares are trading below their 50-day and 200-day moving averages. Furthermore, the stock tumbled in price on the company’s recent quarterly numbers, which missed consensus estimates. SCS claims that supply chain problems and inflationary pressures have hampered its performance. So, because SCS’ operational headwinds are expected to remain in the current quarter due to COVID-19 omicron-variant-related uncertainties, is SCS a buy now? Continue reading. Steelcase Inc . (NYSE:), Grand Rapids Mich. manufactures and exports interior architecture products, including user-centered technology and integrated furniture sets, in the United States as well as internationally. Over the last year, it has fallen 15.6% and 18.% respectively. It closed its most recent trading session at $11.11. The stock currently trades below its 200-day and 50-day moving averages.

The office furniture maker’s shares tumbled after the company reported lower than expected third-quarter top- and bottom lines on December 16. SCS’ shares fell 3.5% intraday in Friday’s trading session. The company’s revenue came in at $738.20 million, versus a $767.63 million consensus estimate. Also, its adjusted EPS came in at $0.08, missing analysts’ estimates by 11.1%. SCS cited several supply-chain disruptions and inflationary pressures as factors that adversely affected its quarter’s growth. SCS also noted that its earnings could “have been approximately three times higher this quarter” if the company had not dealt with these operational challenges. SCS projects its fourth-quarter revenues to range from $740 to $765 million. This would translate into 9-13% annual growth. The quarter’s earnings per share are expected to be close to breakeven. The quarter will see inflation and supply chain issues.

SCS however is positive about the company’s long-term success. SCS also believes the change to hybrid work models will open up new opportunities. Companies around the globe are switching to these types of work and returning employees to their offices. This requires changes to existing equipment and office space. However, the newly identified COVID-19 omicron variant is hampering companies’ office return plans. Surging omicron cases have compelled companies to keep their return-to-office plans on hold, and if the variant continues to spread, SCS’ near-term growth expectations could be hindered.

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