Industrial cleaning equipment manufacturer Tennant Company will be reporting results tomorrow after the bell. Here’s what investors should know.
Tennant beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $331 million, up 2.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance beating 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 grow 4.8% year on year to $319.4 million, slowing from the 15.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.44 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 Q3 results, giving us a hint as to what we can expect. Luxfer delivered year-on-year revenue growth of 2.1%, beating analysts’ expectations by 15.9%, and Snap-on reported flat revenue, topping estimates by 7.8%. Snap-on traded up 9.4% following the results.
Read our full analysis of Luxfer’s results here and Snap-on’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 4.2% during the same time and is heading into earnings with an average analyst price target of $128.50 (compared to the current share price of $89.85).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
