Tennant Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of cleaning equipment maker Tennant (NYS: TNC) sparkle today with an overnight jump as high as 13% on rather average trading volume.
So what: In this morning's second-quarter report, Tennant beat Street estimates on both earnings and sales by a considerable margin. The company also upped sales guidance for the full year by 5% and raised the midpoint of earnings guidance by 8%.
Now what: Management explained that business was strong across every geographic and product segment, except city-cleaning equipment. This was Tennant's sixth consecutive quarter of double-digit organic sales growth, and a recent increase in its product prices should provide stronger margins in the back half of 2011. This five-star CAPS stock is the second-most watched commercial machinery stock in our Watchlist universe, sandwiched between Westport Innovations (Nasdaq: WPRT ) and Barnes (NYS: B) , and for good reason. Its top-notch management team and meaty dividend yield have even caught the eye of our Stock Advisor newsletter team.
Interested in more info on Tennant? Add it to your watchlist.
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