Tenneco Inc. ( TEN - Analyst Report ) shares have surged more than 18% so far on Thursday after announcing a narrower-than-expected loss for the second quarter. That gain was more than enough for this auto parts maker to reach the Zacks #1 Rank Top Performers List.

TEN continues to be impacted by extremely tough industry conditions, but has been attempting to offset those challenges through cost cutting, restructuring and cash generation actions.

Volume today is more than 1.7 million, which is well above the daily average of 1.15 million. TEN is 1 of 3 companies from the Auto/Truck-Orig industry on today's Zacks #1 Rank List, which includes 234 stocks. The other 2 companies are Autoliv ( ALV - Analyst Report ) and Modine Manufacturing ( MOD - Snapshot Report ) .

Second Quarter Results

The adjusted loss per share for the second quarter was 22 cents, marking a significant improvement over the Zacks Consensus Estimate of a 50-cent loss.

Revenue declined 24% to $1.1 billion.

"Although our revenue and profitability continue to be negatively impacted by the global industry downturn, we are pleased with our strong cash flow performance this quarter as well as our gross margin improvement," said Chairman/CEO Gregg Sherrill.

Looking forward, TEN stated that the majority of vehicle inventory corrections occurred in the first half, and it expects strengthening in OE production volumes in the second half. While it doesn't foresee an industry recovery in 2009, TEN believes it will be in a good position whenever it does.

Earnings Estimates

The Zacks Consensus Estimate calls for a loss of $1.57 for this year, which has improved by a nickel in the past 30 days from $1.62. Three months ago, analysts were expecting a loss of $2.50.

A profit of 16 cents is expected for next year, and that guidance hasn't moved over the past 2 months. However, 3 months ago, the company was expected to lose 34 cents.