Tennant (NYSE:TNC) Posts Quarterly Earnings Results, Beats Estimates By $0.42 EPS

Key Points

• Tennant reported quarterly EPS of $1.40, beating analyst expectations by $0.42, while revenue of $322.3 million fell short of the $330.75 million consensus estimate.
• Shares rose 4.0% to $69.06 following the results. The company also declared a quarterly dividend of $0.31, equivalent to a 1.8% annualized yield.
• Analyst sentiment remains cautious, with the stock carrying a consensus “Hold” rating and a $91 target price, although insiders purchased 12,500 shares worth approximately $849,250 in the latest quarter.

Tennant (NYSE:TNC - Get Free Report) issued its earnings results on Monday. The industrial products company reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.42, FiscalAI reports. Tennant had a net margin of 1.50% and a return on equity of 13.32%. The firm had revenue of $322.30 million for the quarter, compared to analysts' expectations of $330.75 million.

Tennant Stock Up 4.0%

Shares of Tennant stock traded up $2.62 during trading on Monday, reaching $69.06. The company's stock had a trading volume of 171,716 shares, compared to its average volume of 210,957. The company has a market cap of $1.18 billion, a price-to-earnings ratio of 67.71, a P/E/G ratio of 2.47 and a beta of 1.14. The company has a quick ratio of 1.37, a current ratio of 2.04 and a debt-to-equity ratio of 0.67. The company has a 50-day simple moving average of $67.69 and a two-hundred day simple moving average of $75.93. Tennant has a 1-year low of $60.17 and a 1-year high of $91.93.

Tennant Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st were paid a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 1.8%. The ex-dividend date was Monday, August 31st. Tennant's payout ratio is 121.57%.

Analyst Ratings Changes

TNC has been the subject of a number of recent analyst reports. Weiss Ratings lowered shares of Tennant from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, September 11th. Zacks Research downgraded Tennant from a "strong-buy" rating to a "strong sell" rating in a research note on Monday, August 10th. Finally, Wall Street Zen lowered Tennant from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $91.00.

Insider Activity at Tennant

In related news, Director Donal Mulligan acquired 8,000 shares of Tennant stock in a transaction on Wednesday, August 12th. The stock was acquired at an average price of $67.34 per share, for a total transaction of $538,720.00. Following the purchase, the director owned 16,000 shares of the company's stock, valued at approximately $1,077,440. This represents a 100.00% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Patrick Allen purchased 3,000 shares of the company's stock in a transaction that occurred on Monday, August 31st. The shares were purchased at an average price of $69.42 per share, for a total transaction of $208,260.00. Following the transaction, the director owned 4,927 shares of the company's stock, valued at $342,032.34. This trade represents a 155.68% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought a total of 12,500 shares of company stock worth $849,250 over the last quarter. Insiders own 3.50% of the company's stock.

Tennant Company Profile

Tennant Company is a manufacturer of cleaning equipment and technologies for commercial, industrial and institutional customers. Its product portfolio includes floor scrubbers, sweepers, combination machines, carpet extractors, outdoor cleaning equipment and related vacuum systems. The company also offers cleaning solutions, replacement parts, maintenance programs and other services designed to support facility-management operations.

Tennant develops technology aimed at improving cleaning efficiency and reducing environmental impact.

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