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.
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.
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.
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.
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.
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.
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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 of Motley 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.