The 10-second takeaway
For the quarter ended March 31 (Q1), Tenneco beat slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Tenneco reported revenue of $1.91 billion. The 10 analysts polled by S&P Capital IQ expected a top line of $1.88 billion on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $1.76 billion.
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 $0.66. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.73 per share. GAAP EPS of $0.49 for Q1 were 35% lower than the prior-year quarter's $0.75 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 16.0%, 80 basis points worse than the prior-year quarter. Operating margin was 5.2%, 50 basis points worse than the prior-year quarter. Net margin was 1.6%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.04 billion. On the bottom line, the average EPS estimate is $1.00.
Next year's average estimate for revenue is $7.94 billion. The average EPS estimate is $3.41.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 124 members out of 203 rating the stock outperform, and 80 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Tenneco a green thumbs-up, and 26 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 $45.85.
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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.