Industrial cleaning equipment manufacturer Tennant Company will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Tennant missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $315.8 million, up 3.6% year on year. It was a slower quarter for the company, with a miss of analysts’ EPS and EBITDA estimates.
Is Tennant a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Tennant’s revenue to grow 3.8% year on year to $323.3 million, slowing from the 7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.37 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tennant has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Tennant’s peers in the water infrastructure segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Mueller Water Products delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 5.4%, and Watts Water Technologies reported a revenue decline of 1.3%, topping estimates by 0.6%. Mueller Water Products traded up 16.6% following the results, while Watts Water Technologies was also up 7.4%.
Read our full analysis of Mueller Water Products’s results here and Watts Water Technologies’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the water infrastructure stocks have shown solid performance, the group has generally underpeformed, with share prices down 4.6% on average over the last month. Tennant is up 2.5% during the same time and is heading into earnings with an average analyst price target of $128 (compared to the current share price of $89.15).
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