Back to top

Image: Bigstock

Tenneco (TEN) Tops Q2 Earnings Estimates, Lowers 2019 View

Read MoreHide Full Article

Tenneco Inc. (TEN - Free Report) reported second-quarter 2019 results, wherein adjusted earnings per share of $1.20 beat the Zacks Consensus Estimate of 93 cents. In the prior-year quarter, the company’s bottom line was $1.84.

In the reported quarter, Tenneco’s adjusted net income was $97 million compared with $96 million in second-quarter 2018.

Its quarterly revenues rose 78% year over year to $4.5 billion. Also, the company’s revenues surpassed the Zacks Consensus Estimate by 1.1%. On a constant-currency basis, revenues rose 1% from the last year. Light-vehicle industry production declined 8% in the reported quarter.

Adjusted EBITDA (income before interest expenses, income taxes, non-controlling interests and depreciation, and amortization) was $414 million compared with $233 million recorded in the prior-year quarter.

Tenneco Inc. Price, Consensus and EPS Surprise

 

Tenneco Inc. Price, Consensus and EPS Surprise

Tenneco Inc. price-consensus-eps-surprise-chart | Tenneco Inc. Quote

Segmental Results

The Clean Air division’s second-quarter revenues were $1.83 billion compared with the year-earlier figure of $1.69 billion.

Revenues in the Ride Performance division were $709 million compared with $506 million recorded in the year-ago quarter.

The Powertrain division’s second-quarter revenues were $1.13 billion.

The Motorparts division’s revenues were $835 million, up from $333 million generated in second-quarter 2018.

Financial Position

Tenneco had cash and cash equivalents of $384 million as of Jun 30, 2019, down from $697 million as of Dec 31, 2018. Long-term debt was $5.51 billion as of Jun 30, 2019, compared with $5.34 billion as of Dec 31, 2018.

Outlook

For the third quarter of 2019, the company expects revenues to be $4.3-$4.4 billion. Further, adjusted EBITDA is projected to be $390-$410 million.

Tenneco revised its guidance for 2019. It expects revenues to be $17.6-$17.8 billion compared with $17.7-$18.1 billion stated earlier.

Zacks Rank & Stocks to Consider

Tenneco currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Fox Factory Holding Corp (FOXF - Free Report) , CarMax, Inc. (KMX - Free Report) and Gentex Corporation (GNTX - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fox Factory has an expected long-term growth rate of 16.7%. In the past year, shares of the company have rallied 17%.

CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 13.6%.

Gentex has an expected long-term growth rate of 5%. In the past year, shares of the company have returned 13.9%.

This Could Be the Fastest Way to Grow Wealth in 2019

Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.

These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.

Click here to see these breakthrough stocks now >>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


CarMax, Inc. (KMX) - free report >>

Fox Factory Holding Corp. (FOXF) - free report >>

Gentex Corporation (GNTX) - free report >>

Tenneco Inc. (TEN) - free report >>