The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tennant met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Margins increased across the board.
Tennant recorded revenue of $187.5 million. The four analysts polled by S&P Capital IQ wanted to see sales of $188.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.62. The four earnings estimates compiled by S&P Capital IQ averaged $0.58 per share. Non-GAAP EPS of $0.62 for Q4 were 5.1% higher than the prior-year quarter's $0.59 per share. GAAP EPS of $0.73 for Q4 were 24% higher than the prior-year quarter's $0.59 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 44.5%, 130 basis points better than the prior-year quarter. Operating margin was 10.1%, 130 basis points better than the prior-year quarter. Net margin was 7.4%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $175.7 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $770.8 million. The average EPS estimate is $2.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 139 members out of 148 rating the stock outperform, and nine members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Tennant a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tennant is hold, with an average price target of $44.25.
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