Tenneco Meets on Revenue, Misses on EPS

Tenneco (NYS: TEN) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tenneco met expectations on revenue and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.

Gross margins dropped, operating margins expanded, and net margins improved.

Revenue details
Tenneco logged revenue of $1.78 billion. The 10 analysts polled by S&P Capital IQ wanted to see sales of $1.81 billion. Sales were 13% higher than the prior-year quarter's $1.58 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.53. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.56 per share on the same basis. GAAP EPS were $0.49 for Q4 compared to -$0.32 per share for the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 15.1%, 110 basis points worse than the prior-year quarter. Operating margin was 4.9%, 70 basis points better than the prior-year quarter. Net margin was 1.7%, 280 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.91 billion. On the bottom line, the average EPS estimate is $0.77.

Next year's average estimate for revenue is $7.87 billion. The average EPS estimate is $3.40.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 124 members out of 204 rating the stock outperform, and 80 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Tenneco a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tenneco is outperform, with an average price target of $45.33.

Over the decades, small-cap stocks like Tenneco have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story