The 10-second takeaway
For the quarter ended March 31 (Q1), Tennant missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped.
Gross margins improved, operating margins improved, net margins dropped.
Tennant chalked up revenue of $173.7 million. The three analysts polled by S&P Capital IQ looked for revenue of $177.8 million on the same basis. GAAP reported sales were 0.6% higher than the prior-year quarter's $172.6 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 $0.28. The four earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.28 for Q1 were 6.7% lower than the prior-year quarter's $0.30 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 43.4%, 170 basis points better than the prior-year quarter. Operating margin was 4.8%, 10 basis points better than the prior-year quarter. Net margin was 3.1%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $203.3 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $795.1 million. The average EPS estimate is $2.37.
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 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Tennant a green thumbs-up, and one gives 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 $47.75.
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