Tennant (TNC) Reports Earnings Tomorrow: What To Expect

Industrial cleaning equipment manufacturer Tennant Company will be reporting results this Monday afternoon. Here’s what investors should know.

Tennant missed analysts’ revenue expectations last quarter, reporting revenues of $303.3 million, down 4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

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

This quarter, the market is expecting Tennant’s revenue to decline 2.6% year on year, a reversal from the 5.6% increase it recorded in the same quarter last year.

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 multiple times over the last two years.

Looking at Tennant’s peers in the water infrastructure segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Watts Water Technologies delivered year-on-year revenue growth of 15.7%, beating analysts’ expectations by 2.3%, and Mueller Water Products reported revenues up 4.6%, topping estimates by 2%. Watts Water Technologies traded up 6.8% following the results while Mueller Water Products was also up 1.5%.

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

There has been positive sentiment among investors in the water infrastructure segment, with share prices up 6.7% on average over the last month. Tennant is up 7.4% during the same time and is heading into earnings with an average analyst price target of $110 (compared to the current share price of $83.45).

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