Industrial cleaning equipment manufacturer Tennant Company will be reporting earnings this Monday after market close. Here’s what to look for.
Tennant missed analysts’ revenue expectations last quarter, reporting revenues of $291.6 million, down 11.3% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant 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 be flat year on year, improving from the 6.8% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
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. Xylem delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 0.7%, and Gorman-Rupp reported revenues up 7.7%, topping estimates by 3.5%. Xylem traded down 6.6% following the results while Gorman-Rupp was up 16%.
Read our full analysis of Xylem’s results here and Gorman-Rupp’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 9.4% on average over the last month. Tennant is up 16.9% during the same time and is heading into earnings with an average analyst price target of $83.75 (compared to the current share price of $82.76).
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