Tenneco’s shares have not witnessed any noticeable change in its price movement since second-quarter 2021 earnings announcement on Aug 5, before opening bell. While the Illinois-based auto supplier missed the Zacks Consensus Estimate for earnings by a whisker, revenues surpassed the mark. It not only posted better year-over-year results but also raised its full-year revenue projections.
The company reported adjusted earnings of 84 cents per share for second-quarter 2021, turning around from the year-ago quarter’s loss of $2.15 a share but missing the Zacks Consensus Estimate by a penny. Weaker-than-expected contribution from the Motorparts segment led to the underperformance. Revenues of $4,583 million topped the Zacks Consensus Estimate of $4,399 million and improved 73.7% year over year.
Segmental Performance
For the April-June period, the Clean Air division’s revenues summed $2,024 million, higher than the year-ago figure of $1,140 million. The metric surpassed the Zacks Consensus Estimate of $1,969 million. Adjusted EBITDA totaled $146 million for the quarter, significantly up from the year-ago quarter’s $38 million. The reported EBITDA topped the consensus metric of $133 million.
Revenues in the Performance Solutions division amounted to $715 million, increasing from the $378 million recorded in the year-earlier period and surpassing the consensus mark of $683 million. Adjusted EBITDA totaled $42 million in the June-end quarter, versus loss of $34 million incurred in the prior-year quarter. The reported EBITDA beat the consensus mark of $41.15 million.
The Powertrain division’s revenues amounted to $1,050 million for the second quarter, rising from $560 million in the year-earlier period and outpacing the consensus mark of $995 million. Adjusted EBITDA totaled $102 million for the reported quarter, beating the consensus mark of $90 million and reversing the loss of $28 million incurred in the comparable year-ago period.
The Motorparts division’s revenues were $794 million, up from the $559 million generated in second-quarter 2020. The reported figure beat the Zacks Consensus Estimate of $758 million. Adjusted EBITDA totaled $118 million for the quarter, up from the $71 million generated in the corresponding period of 2020. The metric, however, fell short of the consensus mark of $121 million.
Financials & Outlook
Tenneco — which shares space with Magna International (MGA - Free Report) , Meritor and American Axle & Manufacturing (AXL - Free Report) — had cash and cash equivalents of $713 million as of Jun 30, 2021. Long-term debt totaled $5,081 million, down from $5,111 million as of Mar 31, 2021. During the second quarter, the company’s net cash provided by operating activities was $73 million compared with the year-earlier quarter’s outflow $179 million.
Backed by improving margins across all segments and better free cash flow performance on account of the firm’s Accelerate+ program, Tenneco has raised its 2021 sales outlook. Full-year revenues are now envisioned within $18.3-$18.6 billion, up from the prior outlook of $17.6-$18.1 billion. The company expects 2021 adjusted EBITDA in the band of $1.36-$1.44 billion, higher than the previous guidance of $1.35-$1.45 billion. Management anticipates net debt to be less than $4.2 billion at the end of 2021, down from the $4.5 billion recorded as of Dec 31, 2020.
For the second half of 2021, Tenneco — which currently carries a Zacks Rank #3 (Hold) — projects revenues between $9 billion and $9.3 billion. Adjusted EBITDA is forecast in the band of $616-$696 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Tenneco’s shares have not witnessed any noticeable change in its price movement since second-quarter 2021 earnings announcement on Aug 5, before opening bell. While the Illinois-based auto supplier missed the Zacks Consensus Estimate for earnings by a whisker, revenues surpassed the mark. It not only posted better year-over-year results but also raised its full-year revenue projections.
The company reported adjusted earnings of 84 cents per share for second-quarter 2021, turning around from the year-ago quarter’s loss of $2.15 a share but missing the Zacks Consensus Estimate by a penny. Weaker-than-expected contribution from the Motorparts segment led to the underperformance. Revenues of $4,583 million topped the Zacks Consensus Estimate of $4,399 million and improved 73.7% year over year.
Segmental Performance
For the April-June period, the Clean Air division’s revenues summed $2,024 million, higher than the year-ago figure of $1,140 million. The metric surpassed the Zacks Consensus Estimate of $1,969 million. Adjusted EBITDA totaled $146 million for the quarter, significantly up from the year-ago quarter’s $38 million. The reported EBITDA topped the consensus metric of $133 million.
Revenues in the Performance Solutions division amounted to $715 million, increasing from the $378 million recorded in the year-earlier period and surpassing the consensus mark of $683 million. Adjusted EBITDA totaled $42 million in the June-end quarter, versus loss of $34 million incurred in the prior-year quarter. The reported EBITDA beat the consensus mark of $41.15 million.
The Powertrain division’s revenues amounted to $1,050 million for the second quarter, rising from $560 million in the year-earlier period and outpacing the consensus mark of $995 million. Adjusted EBITDA totaled $102 million for the reported quarter, beating the consensus mark of $90 million and reversing the loss of $28 million incurred in the comparable year-ago period.
The Motorparts division’s revenues were $794 million, up from the $559 million generated in second-quarter 2020. The reported figure beat the Zacks Consensus Estimate of $758 million. Adjusted EBITDA totaled $118 million for the quarter, up from the $71 million generated in the corresponding period of 2020. The metric, however, fell short of the consensus mark of $121 million.
Financials & Outlook
Tenneco — which shares space with Magna International (MGA - Free Report) , Meritor and American Axle & Manufacturing (AXL - Free Report) — had cash and cash equivalents of $713 million as of Jun 30, 2021. Long-term debt totaled $5,081 million, down from $5,111 million as of Mar 31, 2021. During the second quarter, the company’s net cash provided by operating activities was $73 million compared with the year-earlier quarter’s outflow $179 million.
Backed by improving margins across all segments and better free cash flow performance on account of the firm’s Accelerate+ program, Tenneco has raised its 2021 sales outlook. Full-year revenues are now envisioned within $18.3-$18.6 billion, up from the prior outlook of $17.6-$18.1 billion. The company expects 2021 adjusted EBITDA in the band of $1.36-$1.44 billion, higher than the previous guidance of $1.35-$1.45 billion. Management anticipates net debt to be less than $4.2 billion at the end of 2021, down from the $4.5 billion recorded as of Dec 31, 2020.
For the second half of 2021, Tenneco — which currently carries a Zacks Rank #3 (Hold) — projects revenues between $9 billion and $9.3 billion. Adjusted EBITDA is forecast in the band of $616-$696 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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