Steelcase's stock price dropped more than 11% to $15.79 per share after the company, in earnings released Wednesday, came in below analyst expectations for both revenue and EPS.
Steelcase reported a 9% increase in first-quarter revenue to $824.3 million compared to the same period in 2018, with a 15% year-over-year increase in orders during the quarter.
However, revenue came in at 1.55% below the expectation of analysts polled by Zacks, while Steelcase's earnings per share of 15 cents, fell more than 21% below analyst estimates of 19 cents per share.
Executives at the Grand Rapids, Mich.- based manufacturer blamed the results on orders coming in later than expected during the quarter, and on requests for delivery extensions as well. A shortage of workers in a tight labor market also played a part, said Jim Keane, president and CEO of Steelcase, in a press statement.
"We fell just short of our revenue estimates because order growth was weighted toward the second half of the quarter and customers requested delivery dates later than we typically see, in part because of construction labor shortages that caused their projects to be delayed," Keane said. "We ended the quarter with a high backlog and a strong pipeline of customer opportunities that support our outlook for the second quarter."
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