Tennant Earnings: Here’s Why the Stock is Falling Now

Tennant Co. (NYSE:TNC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.65%.

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Tennant Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.57% to $0.29 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Decreased 3.23% to $168.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tennant Co. reported adjusted EPS income of $0.29 per share. By that measure, the company missed the mean analyst estimate of $0.36. It missed the average revenue estimate of $174.7 million.

Quoting Management: Commented Chris Killingstad, Tennant Company’s president and chief executive officer: “We expected increased sales, even though our first quarter is traditionally our slowest and most unpredictable quarter. The first two months came in as anticipated, but March sales were a bit below our expectations. This was primarily due to a slower than anticipated transition to new products, coupled with sluggish sales of city cleaning equipment in all geographies.”

Key Stats (on next page)…

Revenue decreased 10.35% from $187.51 million in the previous quarter. EPS decreased 53.23% from $0.62 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.77 to a profit $0.78. For the current year, the average estimate has moved down from a profit of $2.46 to a profit of $2.45 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)