Sidoti Issues Negative Outlook for Tennant Earnings

Key Points

• Sidoti lowered its Tennant Q3 2026 EPS estimate to $1.10 from $1.56 and forecast FY2026 EPS of $3.96, below the company’s current guidance range of $3.80–$4.45.
• Tennant’s latest quarterly results missed expectations, with EPS of $0.83 versus the $1.33 consensus and revenue of $324 million versus $329.55 million expected. Shares were down 5.9%, opening at $69.55.
• The stock retains a “Moderate Buy” consensus rating and a $91 price target, while Tennant declared a $0.31 quarterly dividend and authorized a repurchase of up to 11.1% of outstanding shares.

Tennant Company (NYSE:TNC - Free Report) - Equities research analysts at Sidoti lowered their Q3 2026 earnings estimates for shares of Tennant in a report released on Friday, August 7th. Sidoti analyst S. Ferazani now forecasts that the industrial products company will post earnings of $1.10 per share for the quarter, down from their prior estimate of $1.56. The consensus estimate for Tennant's current full-year earnings is $4.13 per share. Sidoti also issued estimates for Tennant's Q4 2026 earnings at $1.45 EPS, FY2026 earnings at $3.96 EPS, Q1 2027 earnings at $0.99 EPS, Q4 2027 earnings at $1.79 EPS and FY2027 earnings at $5.82 EPS.

Tennant (NYSE:TNC - Get Free Report) last released its earnings results on Wednesday, August 5th. The industrial products company reported $0.83 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.33 by ($0.50). The business had revenue of $324.00 million for the quarter, compared to analysts' expectations of $329.55 million. Tennant had a net margin of 1.50% and a return on equity of 13.32%. Tennant's revenue for the quarter was up 1.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.49 earnings per share. Tennant has set its FY 2026 guidance at 3.800-4.450 EPS.

TNC has been the subject of a number of other research reports. Zacks Research raised shares of Tennant from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 26th. Weiss Ratings upgraded Tennant from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, June 5th. Finally, Wall Street Zen cut Tennant from a "buy" rating to a "hold" rating in a research report on Saturday. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $91.00.

Tennant Trading Down 5.9%

Shares of NYSE:TNC opened at $69.55 on Tuesday. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.04 and a quick ratio of 1.37. Tennant has a 1 year low of $60.17 and a 1 year high of $91.93. The company has a market cap of $1.19 billion, a P/E ratio of 68.19, a PEG ratio of 2.56 and a beta of 1.13. The stock's fifty day moving average price is $86.03 and its 200-day moving average price is $79.44.

Tennant Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be issued a dividend of $0.31 per share. The ex-dividend date of this dividend is Monday, August 31st. This represents a $1.24 annualized dividend and a yield of 1.8%. Tennant's payout ratio is currently 121.57%.

Tennant announced that its Board of Directors has initiated a share repurchase plan on Monday, May 4th that authorizes the company to repurchase 2,000,000,000,000 outstanding shares. This repurchase authorization authorizes the industrial products company to purchase up to 11.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Tennant

A number of institutional investors and hedge funds have recently bought and sold shares of TNC. Hantz Financial Services Inc. grew its position in shares of Tennant by 85.1% during the fourth quarter. Hantz Financial Services Inc. now owns 385 shares of the industrial products company's stock worth $28,000 after purchasing an additional 177 shares in the last quarter. UMB Bank n.a. raised its position in shares of Tennant by 1,778.6% during the fourth quarter. UMB Bank n.a. now owns 526 shares of the industrial products company's stock valued at $39,000 after buying an additional 498 shares during the last quarter. State of Wyoming bought a new stake in shares of Tennant during the second quarter valued at approximately $73,000. BNP Paribas Financial Markets boosted its position in shares of Tennant by 25.1% during the second quarter. BNP Paribas Financial Markets now owns 1,936 shares of the industrial products company's stock worth $150,000 after acquiring an additional 389 shares during the last quarter. Finally, Tower Research Capital LLC TRC grew its stake in Tennant by 40.8% during the second quarter. Tower Research Capital LLC TRC now owns 2,492 shares of the industrial products company's stock valued at $193,000 after acquiring an additional 722 shares in the last quarter. 93.33% of the stock is owned by institutional investors.

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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