Tennant (TNC) Q3 Earnings Report Preview: What To Look For

Industrial cleaning equipment manufacturer Tennant Company will be reporting results this Monday after market close. Here’s what you need to know.

Tennant missed analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $318.6 million, down 3.7% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

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

This quarter, analysts are expecting Tennant’s revenue to decline 3.1% year on year to $306 million, a reversal from the 3.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.50 per share.

Analysts covering the company have generally 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 since going public.

Looking at Tennant’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Xylem delivered year-on-year revenue growth of 7.8%, beating analysts’ expectations by 1.9%, and Columbus McKinnon reported revenues up 7.7%, topping estimates by 8.5%. Xylem traded up 2.4% following the results while Columbus McKinnon was also up 7.6%.

Read our full analysis of Xylem’s results here and Columbus McKinnon’s results here.

Investors in the industrial machinery segment have had steady hands going into earnings, with share prices flat over the last month. Tennant is down 3.4% during the same time and is heading into earnings with an average analyst price target of $108.75 (compared to the current share price of $80).

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