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.
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.
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.
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%.
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