Shares of Steelcase (SCS) slipped in after hours trading after the company reported better than expected results for the first quarter but provided a lower-than-expected outlook for the second quarter.

EARNINGS: After the market close, Steelcase reported Q1 adjusted earnings per share of 18c on revenue of $718.8M, beating analyst expectations of 16c and $702.37M, respectively. President and Chief Executive Officer Jim Keane said the results for the quarter were partly a result of "strong revenue growth in Asia Pacific and a significant improvement in EMEA's gross margins." Keane added that he was "pleased" with the improvement in gross margins in the Americas.

GUIDANCE. In addition, Steelcase provided an outlook for Q2, guiding for adjusted EPS in the range of 29c-33c on revenue in the range of $770M-$795M. The forecasted ranges are lower than analysts' current estimates of 37c and $827.27M, respectively. Commenting on its low expectations, the company cited a decline in Americas order patterns in Q1, which itself was partly driven by a significant decline in orders across the Energy vertical market. Steelcase added that EMEA order patterns also declined in Q1 as a result of continued weakness in the Middle East and Africa as well as a "significant" decline in the U.K. The company sees an organic revenue decline in Q2, but still remains "positive" about its longer-term prospects, finance chief Dave Sylvester concluded.

PRICE ACTION: In after hours trading, Steelcase dropped 9.78% to $13.29.