Tennant Beats on EPS but GAAP Results Lag
Tennant (NYS: TNC) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tennant met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted significantly.
Gross margin grew, operating margin grew, and net margin dropped.
Tennant booked revenue of $193.2 million. The four analysts polled by S&P Capital IQ predicted revenue of $192.8 million on the same basis. GAAP reported sales were 5.7% higher than the prior-year quarter's $182.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.59. The four earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.59 for Q4 were 33% lower than the prior-year quarter's $0.88 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.2%, 100 basis points better than the prior-year quarter. Operating margin was 8.0%, 200 basis points better than the prior-year quarter. Net margin was 5.8%, 350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $177.8 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $794.9 million. The average EPS estimate is $2.35.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 137 members out of 146 rating the stock outperform, and nine members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Tennant a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tennant is outperform, with an average price target of $45.50.
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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. Motley Fool newsletter services have recommended buying shares of Tennant. 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.