Tennant (TNC) Reports Earnings Tomorrow: What To Expect

Industrial cleaning equipment manufacturer Tennant Company will be reporting earnings tomorrow after market close. Here’s what to look for.

Tennant beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $328.9 million, up 5.6% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations.

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 4.6% year on year to $296.6 million, a reversal from the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.30 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.5% on average.

Looking at Tennant’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Worthington’s revenues decreased 3.9% year on year, beating analysts’ expectations by 6.7%, and GE Aerospace reported revenues up 23%, topping estimates by 1.7%. Worthington traded up 24% following the results while GE Aerospace was also up 8.6%.

Read our full analysis of Worthington’s results here and GE Aerospace’s results here.

Investors in the industrial machinery segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Tennant is down 8.9% during the same time and is heading into earnings with an average analyst price target of $129.33 (compared to the current share price of $72.66).

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