Tennant Misses on the Top and Bottom Lines

Tennant (NYSE: TNC  ) reported earnings on April 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Tennant missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share expanded. GAAP earnings per share dropped.

Margins dropped across the board.

Revenue details
Tennant tallied revenue of $168.1 million. The four analysts polled by S&P Capital IQ looked for sales of $174.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.29. The four earnings estimates compiled by S&P Capital IQ anticipated $0.36 per share. Non-GAAP EPS of $0.29 for Q1 were 3.6% higher than the prior-year quarter's $0.28 per share. GAAP EPS of $0.27 for Q1 were 3.6% lower than the prior-year quarter's $0.28 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.1%, 30 basis points worse than the prior-year quarter. Operating margin was 4.1%, 70 basis points worse than the prior-year quarter. Net margin was 3.0%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $200.6 million. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $760.4 million. The average EPS estimate is $2.39.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 139 members out of 148 rating the stock outperform, and nine members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Tennant a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tennant is outperform, with an average price target of $51.67.

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