Tenneco Earnings: Here’s Why Investors are Excited Now

Tenneco Inc. (NYSE:TEN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.42%.

Tenneco Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 3.51% to $1.1 in the quarter versus EPS of $1.14 in the year-earlier quarter.

Revenue: Rose 7.66% to $2.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tenneco Inc. reported adjusted EPS income of $1.1 per share. By that measure, the company beat the mean analyst estimate of $1.09. It beat the average revenue estimate of $1.96 billion.

Quoting Management: “We delivered another solid quarter with top-line growth in both product divisions driven by stronger global light vehicle production, higher commercial vehicle revenue in Europe and South America and a solid contribution from our global aftermarket business,” said Gregg Sherrill, chairman and CEO, Tenneco. “I am also pleased that we delivered record-high EBIT and adjusted EBIT. In addition, our outstanding effort in managing working capital drove our best-ever second quarter performance for generating cash from operations.”

Key Stats (on next page)…

Revenue increased 8.62% from $1.9 billion in the previous quarter. EPS increased 52.78% from $0.72 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.98 and has not changed. For the current year, the average estimate has moved up from a profit of $3.59 to a profit of $3.66 over the last ninety days.

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