Tennant
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Tennant missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank.
Gross margins grew, operating margins dropped, net margins shrank.
Revenue details
Tennant logged revenue of $178.3 million. The four analysts polled by S&P Capital IQ expected revenue of $186.9 million on the same basis. GAAP reported sales were 4.7% lower than the prior-year quarter's $187.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.47. The four earnings estimates compiled by S&P Capital IQ predicted $0.63 per share. GAAP EPS of $0.46 for Q3 were 8.0% lower than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 43.5%, 60 basis points better than the prior-year quarter. Operating margin was 7.3%, 110 basis points worse than the prior-year quarter. Net margin was 4.9%, 30 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $198.3 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $760.3 million. The average EPS estimate is $2.22.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 140 members out of 151 rating the stock outperform, and 11 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 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 $49.25.
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