Steelcase Inc (NYSE:SCS) stock fell 6.59% (As on September 19, 11:42:34 AM UTC-4, Source: Google Finance) after the company reported better-than-expected second quarter earnings and raised its full-year guidance, despite revenue coming in slightly below estimates. The company saw organic revenue growth of 2% overall, driven by 3% growth in its Americas segment. This was partially offset by a 4% organic decline in the International segment, which Steelcase attributed to continued weakness in China. The Americas growth was driven by higher volume from large corporate, education, and government customers, while the International decline was primarily driven by continued weakness in China. Orders (adjusted for the impact of a divestiture and currency translation effects) declined modestly in the second quarter compared to the prior year, including 3 percent growth in the Americas and an 11 percent decline in International. The order growth in the Americas was primarily driven by government, education, and healthcare customers, while orders from large corporate customers declined compared to the prior year after several quarters of strong year-over-year growth. The order decline in International was driven by declines across most major markets with the exception of India.

Moreover, adjusted operating income of $68.5 million in the second quarter represented an increase of $15.2 million compared to the prior year. Gross margin of 34.5 percent in the second quarter represented an improvement of 130 basis points compared to the prior year driven by favorable business mix and benefits from operational performance and cost reduction initiatives. Total liquidity, which is comprised of cash and cash equivalents, short-term investments and the cash surrender value of company-owned life insurance, aggregated to $507.1 million at the end of the second quarter and represented an increase of $192.6 million compared to the prior year. Total debt was $446.7 million. Trailing four quarter adjusted EBITDA of $285.3 million (or 9.1 percent of revenue) represented an increase of 16 percent compared to the prior year.

SCS in the second quarter of FY 24 has reported the adjusted earnings per share of 39 cents, beating the analysts’ estimates for the adjusted earnings per share of 36 cents. The company had reported the adjusted revenue flat growth to $855.8 million in the second quarter of FY 24, beating the analysts’ estimates for revenue of $867.43 million.

For the third quarter, Steelcase expects revenue of $785-810 million and adjusted EPS of $0.21-$0.25. The company also raised its full-year adjusted EPS outlook, saying it now has confidence in potentially achieving the higher end of its previous $0.85-$1.00 range.