Steelcase Inc. (NYSE:SCS) shares were trading more than 4% lower Friday morning following the company’s reported Q3 results, with EPS coming in at $0.08, missing the consensus estimate of $0.09. Quarterly revenue grew 20% to $738.2 million, compared to the consensus estimate of $769.9 million.

The quarterly miss was driven by supply chain disruptions and shipping delays. Additionally, gross margin decreased by 120bp year-over-year, due to ongoing inflationary headwinds.

On a positive note, orders grew by 40% year-over-year, highlighting the desire for many companies to continue utilizing office spaces. While analysts at Berenberg Bank expect profitability to remain muted in the near term, they believe robust demand will translate into higher earnings in 2023 as supply chain and cost headwinds ease.