Tennant (NYSE:TNC) Announces Earnings Results, Misses Expectations By $0.50 EPS

Key Points

• Tennant reported quarterly EPS of $0.83, missing the $1.33 consensus estimate by $0.50. The company updated its fiscal 2026 EPS guidance to a range of $3.80-$4.45.
• Shares fell 2.5% to $87 following the results, while the company’s net margin stood at 2.55% and return on equity at 14.87%.
• Tennant declared a quarterly dividend of $0.31, equivalent to a 1.4% annualized yield, and analysts maintain a “Moderate Buy” consensus with a $91 average price target.

Tennant (NYSE:TNC - Get Free Report) released its quarterly earnings data on Wednesday. The industrial products company reported $0.83 EPS for the quarter, missing the consensus estimate of $1.33 by ($0.50), Zacks reports. Tennant had a net margin of 2.55% and a return on equity of 14.87%. Tennant updated its FY 2026 guidance to 3.800-4.450 EPS.

Tennant Stock Down 2.5%

Shares of NYSE:TNC traded down $2.22 during trading hours on Wednesday, hitting $87.00. The company's stock had a trading volume of 145,876 shares, compared to its average volume of 215,598. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.12 and a quick ratio of 1.41. The firm's fifty day moving average price is $86.83 and its 200 day moving average price is $79.51. Tennant has a 52 week low of $60.17 and a 52 week high of $91.93. The company has a market capitalization of $1.48 billion, a price-to-earnings ratio of 52.41, a P/E/G ratio of 2.39 and a beta of 1.13.

Tennant Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Monday, August 31st will be issued a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Monday, August 31st. Tennant's payout ratio is presently 74.70%.

Tennant declared that its Board of Directors has initiated a stock buyback program on Monday, May 4th that allows the company to buyback 2,000,000,000,000 outstanding shares. This buyback authorization allows the industrial products company to repurchase up to 11.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Tennant

A number of large investors have recently added to or reduced their stakes in TNC. Vision One Management Partners LP boosted its stake in Tennant by 63.1% in the third 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 in the last quarter. Millennium Management LLC raised its stake in Tennant by 33.8% in the fourth quarter. Millennium Management LLC now owns 358,452 shares of the industrial products company's stock valued at $26,418,000 after buying an additional 90,611 shares during the last quarter. Jane Street Group LLC raised its stake in Tennant by 158.4% in the fourth quarter. Jane Street Group LLC now owns 94,461 shares of the industrial products company's stock valued at $6,962,000 after buying an additional 57,907 shares during the last quarter. Renaissance Technologies LLC boosted its holdings in Tennant by 116.3% in the fourth quarter. Renaissance Technologies LLC now owns 76,900 shares of the industrial products company's stock worth $5,668,000 after acquiring an additional 41,342 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its holdings in Tennant by 34.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 130,175 shares of the industrial products company's stock worth $9,594,000 after acquiring an additional 33,491 shares in the last quarter. 93.33% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Zacks Research upgraded shares of Tennant from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 26th. Wall Street Zen upgraded Tennant from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Finally, Weiss Ratings upgraded Tennant from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, June 5th. One investment 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 company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $91.00.

About Tennant

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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