The 10-second takeaway
For the quarter ended March 31 (Q1), Tenneco beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins contracted, net margins grew.
Tenneco chalked up revenue of $1.90 billion. The 11 analysts polled by S&P Capital IQ expected to see a top line of $1.86 billion 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 $0.72. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.65 per share. Non-GAAP EPS of $0.72 for Q1 were 9.1% higher than the prior-year quarter's $0.66 per share. GAAP EPS of $0.88 for Q1 were 80% higher than the prior-year quarter's $0.49 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 15.7%, 30 basis points worse than the prior-year quarter. Operating margin was 5.0%, 30 basis points worse than the prior-year quarter. Net margin was 2.8%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.96 billion. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $7.76 billion. The average EPS estimate is $3.59.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 123 members out of 198 rating the stock outperform, and 75 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Tenneco a green thumbs-up, and 23 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 $43.43.
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