Tennant (TNC) Reports Q2: Everything You Need To Know Ahead Of Earnings

Industrial cleaning equipment manufacturer Tennant Company will be reporting results this Wednesday afternoon. Here’s what to expect.

Tennant missed analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $290 million, down 6.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.

Is Tennant a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Tennant’s revenue to decline 1.1% year on year to $327.2 million, a reversal from the 2.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.63 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tennant has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Tennant’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Xylem delivered year-on-year revenue growth of 6.1%, beating analysts’ expectations by 4.2%, and Mueller Water Products reported revenues up 6.6%, topping estimates by 3.4%. Xylem traded up 8.7% following the results.

Read our full analysis of Xylem’s results here and Mueller Water Products’s results here.

Investors in the industrial machinery segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Tennant is up 2.2% during the same time and is heading into earnings with an average analyst price target of $120 (compared to the current share price of $82.74).

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