Sidoti Issues Negative Forecast for Tennant Earnings

Key Points

• Sidoti trimmed Tennant’s Q2 2027 earnings forecast slightly to $1.72 per share from $1.73, signaling a modestly more cautious outlook. The consensus full-year earnings estimate remains $5.12 per share.
• Tennant recently beat expectations in its latest quarter, reporting EPS of $0.58 versus the $0.40 forecast and revenue of $297.9 million, up 2.7% year over year. The company also reiterated FY2026 EPS guidance of $4.70 to $5.30.
• Analyst sentiment is mixed but leans positive, with recent upgrades from Wall Street Zen and Zacks Research, while the broader consensus sits at “Moderate Buy” with an average target price of $91.

Tennant Company (NYSE:TNC - Free Report) - Equities researchers at Sidoti cut their Q2 2027 earnings estimates for Tennant in a report released on Wednesday, July 15th. Sidoti analyst S. Ferazani now expects that the industrial products company will earn $1.72 per share for the quarter, down from their previous forecast of $1.73. The consensus estimate for Tennant's current full-year earnings is $5.12 per share.

Several other brokerages also recently weighed in on TNC. Weiss Ratings upgraded Tennant from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, June 5th. Wall Street Zen upgraded shares of Tennant from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Finally, Zacks Research raised shares of Tennant from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 26th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $91.00.

Tennant Price Performance

TNC opened at $86.31 on Thursday. The stock's 50 day simple moving average is $86.05 and its 200 day simple moving average is $78.49. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.12 and a quick ratio of 1.41. Tennant has a 1 year low of $60.17 and a 1 year high of $91.93. The firm has a market cap of $1.47 billion, a price-to-earnings ratio of 51.99, a PEG ratio of 2.38 and a beta of 1.12.

Tennant (NYSE:TNC - Get Free Report) last announced its quarterly earnings data on Monday, May 4th. The industrial products company reported $0.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.40 by $0.18. Tennant had a return on equity of 14.87% and a net margin of 2.55%.The firm had revenue of $297.90 million for the quarter, compared to analysts' expectations of $289.25 million. During the same period last year, the firm earned $1.12 earnings per share. The company's revenue for the quarter was up 2.7% compared to the same quarter last year. Tennant has set its FY 2026 guidance at 4.700-5.300 EPS.

Institutional Trading of Tennant

A number of hedge funds have recently modified their holdings of the business. Gamco Investors INC. ET AL grew its position in shares of Tennant by 40.5% in the 1st quarter. Gamco Investors INC. ET AL now owns 706,400 shares of the industrial products company's stock worth $46,905,000 after buying an additional 203,802 shares during the period. Vision One Management Partners LP lifted its position in Tennant by 63.1% during the 3rd quarter. Vision One Management Partners LP now owns 291,864 shares of the industrial products company's stock valued at $23,212,000 after acquiring an additional 112,873 shares during the period. Millennium Management LLC lifted its position in Tennant by 33.8% during the 4th quarter. Millennium Management LLC now owns 358,452 shares of the industrial products company's stock valued at $26,418,000 after acquiring an additional 90,611 shares during the period. Bank of New York Mellon Corp boosted its stake in Tennant by 27.3% during the first quarter. Bank of New York Mellon Corp now owns 333,187 shares of the industrial products company's stock worth $22,124,000 after acquiring an additional 71,437 shares in the last quarter. Finally, Jane Street Group LLC boosted its stake in Tennant by 158.4% during the fourth quarter. Jane Street Group LLC now owns 94,461 shares of the industrial products company's stock worth $6,962,000 after acquiring an additional 57,907 shares in the last quarter. Institutional investors own 93.33% of the company's stock.

Tennant Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Friday, May 29th were issued a $0.31 dividend. The ex-dividend date was Friday, May 29th. This represents a $1.24 dividend on an annualized basis and a yield of 1.4%. Tennant's dividend payout ratio is 74.70%.

Tennant announced that its board has approved a share buyback program on Monday, May 4th that allows the company to repurchase 2,000,000,000,000 shares. This repurchase authorization allows the industrial products company to buy up to 11.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

Tennant Company Profile

Tennant Company is a global provider of solutions that help keep facilities clean, safe and sustainable. The company designs, manufactures and markets a broad range of cleaning machines, chemicals and service programs that address the cleaning needs of customers in diverse industries, including manufacturing, warehousing, food and beverage, healthcare and education. Tennant's product portfolio encompasses both ride-on and walk-behind floor scrubbers and sweepers, carpet extractors, power brushes, pressure washers and autonomous cleaning machines.

Founded in 1870 and headquartered in Minneapolis, Minnesota, Tennant has grown from a regional manufacturer into a multinational organization with operations in more than 70 countries and sales representation in over 100 markets worldwide.

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