Tenneco Inc. posted third-quarter 2019 results, wherein adjusted earnings per share of $1.23 beat the Zacks Consensus Estimate of 97 cents, aided by stellar top-line growth in its Clean Air, Ride Performance and Motorparts divisions. However, the reported figure came in lower than the prior-years’ $1.66.
In the third quarter, Tenneco’s adjusted net income came in at $99 million compared with the $85 million recorded in third-quarter 2018.
The company’s quarterly revenues soared 82% year over year to $4,319 million, mainly aided by higher light vehicle, off-highway and other revenues. Also, the revenue figure surpassed the Zacks Consensus Estimate of $4,280 million. On a constant-currency basis, revenues were up 3%, year on year. Light-vehicle industry production declined 3% in the quarter.
Adjusted EBITDA (income before interest expenses, income taxes, non-controlling interests and depreciation, and amortization) was $387 million compared with the $366 million recorded in the prior-year quarter.
Tenneco Inc. Price and Consensus
Segmental Results
The Clean Air division’s third-quarter revenues were $1.77 billion compared with the year-earlier figure of $1.6 billion.
Revenues in the Ride Performance division came in at $671 million compared with the $461 million recorded in the year-ago quarter.
The Powertrain division’s third-quarter revenues summed $1.08 billion.
The Motorparts division’s revenues were $794 million, significantly up from the $308 million generated in third-quarter 2018.
Financial Position
Tenneco had cash and cash equivalents of $389 million as of Sep 30, 2019, down from $697 million as of Dec 31, 2018. Long-term debt was $5.41 billion as of Sep 30, 2019, compared with $5.34 billion as of Dec 31, 2018. The debt-to-capital ratio stands at 77.23%.
Outlook
For the fourth quarter of 2019, the company expects revenues in the range of $3.95 billion to $4.05 billion. Further, adjusted EBITDA is projected at $295-$315 million.
Tenneco has revised its guidance for full-year 2019. It expects revenues of roughly $17.25-$17.35 billion and adjusted EBITDA between $1,425 million and $1,445 million.
Zacks Rank & Stocks to Consider
Tenneco currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks worth considering are Kinross Gold Corporation (KGC - Free Report) , sporting a Zacks Rank #1 (Strong Buy), Iochpe-Maxion SA (IOCJY - Free Report) and BRP Inc. (DOOO - Free Report) , both carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross Gold has an expected earnings growth rate of a whopping 210% for 2019. The company’s shares have surged 75.7% in the past year.
Iochpe-Maxion has an estimated earnings growth rate of 50% for the ongoing year. The company’s shares have appreciated roughly 4.6% in a year’s time.
BRP has a projected earnings growth rate of 18.49% for the current year. Its shares have gained around 11.1% over the past year.
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Tenneco Inc. posted third-quarter 2019 results, wherein adjusted earnings per share of $1.23 beat the Zacks Consensus Estimate of 97 cents, aided by stellar top-line growth in its Clean Air, Ride Performance and Motorparts divisions. However, the reported figure came in lower than the prior-years’ $1.66.
In the third quarter, Tenneco’s adjusted net income came in at $99 million compared with the $85 million recorded in third-quarter 2018.
The company’s quarterly revenues soared 82% year over year to $4,319 million, mainly aided by higher light vehicle, off-highway and other revenues. Also, the revenue figure surpassed the Zacks Consensus Estimate of $4,280 million. On a constant-currency basis, revenues were up 3%, year on year. Light-vehicle industry production declined 3% in the quarter.
Adjusted EBITDA (income before interest expenses, income taxes, non-controlling interests and depreciation, and amortization) was $387 million compared with the $366 million recorded in the prior-year quarter.
Tenneco Inc. Price and Consensus
Segmental Results
The Clean Air division’s third-quarter revenues were $1.77 billion compared with the year-earlier figure of $1.6 billion.
Revenues in the Ride Performance division came in at $671 million compared with the $461 million recorded in the year-ago quarter.
The Powertrain division’s third-quarter revenues summed $1.08 billion.
The Motorparts division’s revenues were $794 million, significantly up from the $308 million generated in third-quarter 2018.
Financial Position
Tenneco had cash and cash equivalents of $389 million as of Sep 30, 2019, down from $697 million as of Dec 31, 2018. Long-term debt was $5.41 billion as of Sep 30, 2019, compared with $5.34 billion as of Dec 31, 2018. The debt-to-capital ratio stands at 77.23%.
Outlook
For the fourth quarter of 2019, the company expects revenues in the range of $3.95 billion to $4.05 billion. Further, adjusted EBITDA is projected at $295-$315 million.
Tenneco has revised its guidance for full-year 2019. It expects revenues of roughly $17.25-$17.35 billion and adjusted EBITDA between $1,425 million and $1,445 million.
Zacks Rank & Stocks to Consider
Tenneco currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks worth considering are Kinross Gold Corporation (KGC - Free Report) , sporting a Zacks Rank #1 (Strong Buy), Iochpe-Maxion SA (IOCJY - Free Report) and BRP Inc. (DOOO - Free Report) , both carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross Gold has an expected earnings growth rate of a whopping 210% for 2019. The company’s shares have surged 75.7% in the past year.
Iochpe-Maxion has an estimated earnings growth rate of 50% for the ongoing year. The company’s shares have appreciated roughly 4.6% in a year’s time.
BRP has a projected earnings growth rate of 18.49% for the current year. Its shares have gained around 11.1% over the past year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.5% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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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