Tenneco Inc. reported fourth-quarter 2018 results, wherein adjusted earnings per share of $1.30 missed the Zacks Consensus Estimate of $1.43. Also, the company’s bottom line declined from the prior-year quarter figure of $1.75.
In the reported quarter, Tenneco’s adjusted net income was $105 million compared with $91 million in fourth-quarter 2017.
Quarterly revenues rose 79% year over year to $4.3 billion, almost in line with the Zacks Consensus Estimate. This year-over-year rise was driven by the completion of the acquisition of Federal-Mogul LLC on Oct 1, 2018. On a constant-currency basis and excluding the impact of the acquisition, total revenues were up 4% while value-added revenues increased appreciably to $3.6 billion.
Adjusted EBIT (earnings before interest, taxes and non-controlling interests) was $399 million compared with $225 million recorded in the prior-year quarter. Adjusted EBIT results were driven by the completion of the Federal-Mogul acquisition.
2018 Results
Tenneco reported adjusted earnings per share of $6.28 in 2018, down from the 2017 figure of $6.71.
The company reported revenues of $11.8 billion in the year, up from the 2017 figure of $9.3 billion.
Segmental Results
The Clean Air division’s fourth-quarter revenues were $1.7 billion compared with the year-earlier figure of $1.6 billion.
Revenues in the Ride Performance division were $469 million compared with $480 million recorded in the year-ago quarter.
The Aftermarket division’s revenues were $268 million, down from $282 million generated in fourth-quarter 2017.
Financial Position
Tenneco had cash and cash equivalents of $697 million as of Dec 31, 2018, up from $315 million as of Dec 31, 2017. Long-term debt was $5.3 billion as of Dec 31, 2018, compared with $1.36 billion as of Dec 31, 2017.
2019 Outlook
For 2019, the company expects revenues of $18.2-$18.4 billion. On a pro forma basis, it expects revenue growth rate to be 4-5% in constant dollars.
Zacks Rank and Stocks to Consider
Tenneco currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Oshkosh Corp. (OSK - Free Report) and General Motors Company (GM - Free Report) . While Ferrari currently sports a Zacks Rank #1 (Strong Buy), Oshkosh and General Motors carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ferrari has an expected long-term growth rate of 18.5%. Over the past year, shares of the company have risen 7.6%.
Oshkosh has an expected long-term growth rate of 11.3%. Over the past six months, shares of the company have gained 2.7%.
General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 9.7%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Tenneco Inc. reported fourth-quarter 2018 results, wherein adjusted earnings per share of $1.30 missed the Zacks Consensus Estimate of $1.43. Also, the company’s bottom line declined from the prior-year quarter figure of $1.75.
In the reported quarter, Tenneco’s adjusted net income was $105 million compared with $91 million in fourth-quarter 2017.
Quarterly revenues rose 79% year over year to $4.3 billion, almost in line with the Zacks Consensus Estimate. This year-over-year rise was driven by the completion of the acquisition of Federal-Mogul LLC on Oct 1, 2018. On a constant-currency basis and excluding the impact of the acquisition, total revenues were up 4% while value-added revenues increased appreciably to $3.6 billion.
Adjusted EBIT (earnings before interest, taxes and non-controlling interests) was $399 million compared with $225 million recorded in the prior-year quarter. Adjusted EBIT results were driven by the completion of the Federal-Mogul acquisition.
2018 Results
Tenneco reported adjusted earnings per share of $6.28 in 2018, down from the 2017 figure of $6.71.
The company reported revenues of $11.8 billion in the year, up from the 2017 figure of $9.3 billion.
Segmental Results
The Clean Air division’s fourth-quarter revenues were $1.7 billion compared with the year-earlier figure of $1.6 billion.
Revenues in the Ride Performance division were $469 million compared with $480 million recorded in the year-ago quarter.
The Aftermarket division’s revenues were $268 million, down from $282 million generated in fourth-quarter 2017.
Financial Position
Tenneco had cash and cash equivalents of $697 million as of Dec 31, 2018, up from $315 million as of Dec 31, 2017. Long-term debt was $5.3 billion as of Dec 31, 2018, compared with $1.36 billion as of Dec 31, 2017.
2019 Outlook
For 2019, the company expects revenues of $18.2-$18.4 billion. On a pro forma basis, it expects revenue growth rate to be 4-5% in constant dollars.
Zacks Rank and Stocks to Consider
Tenneco currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Oshkosh Corp. (OSK - Free Report) and General Motors Company (GM - Free Report) . While Ferrari currently sports a Zacks Rank #1 (Strong Buy), Oshkosh and General Motors carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ferrari has an expected long-term growth rate of 18.5%. Over the past year, shares of the company have risen 7.6%.
Oshkosh has an expected long-term growth rate of 11.3%. Over the past six months, shares of the company have gained 2.7%.
General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 9.7%.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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