Tenaris SA (TS) shares fell sharply by 5.43% in early trading, as investors reacted to the company's cautious second-quarter guidance overshadowing better-than-expected first-quarter results.

The steel tube manufacturer reported Q1 earnings of $1.07 per ADS, surpassing the $0.89 analyst consensus, with revenue rising to $3.10 billion from $2.92 billion a year ago. However, the company warned that sales for the current quarter will be affected by lower shipments in the Middle East, and margins will be impacted by higher logistics costs and lower absorption of fixed costs.

Adding to the market's reaction was the announcement of a CEO succession, with Gabriel Podskubka appointed as the new Chief Executive Officer, while Paolo Rocca will continue as Chairman. Leadership transitions often introduce uncertainty as markets assess the new executive's strategy.