Tenneco (TEN) Q1 Loss Narrower Than Expected, Revenues Down
Tenneco Inc. TEN posted first-quarter 2020 adjusted loss per share of 31 cents, narrower than the Zacks Consensus Estimate of a loss of 95 cents. Higher-than-anticipated revenues from Clean Air, Powertrain and Ride Performance segments resulted in the narrower-than-expected loss.
However, the bottom line compared unfavorably with the year-ago quarter’s earnings of 52 cents due to lower year-over-year revenues across all the segments.
The OEM auto supplier posted first-quarter 2020 revenues of $3,836 million, beating the Zacks Consensus Estimate of $3,677 million. The top line, however, declined from the $4,484 million recorded in first-quarter 2019. Decline in light-vehicle production due to the coronavirus crisis and unfavorable foreign-currency translation hurt revenues.
Tenneco Inc Price, Consensus and EPS Surprise
Tenneco Inc price-consensus-eps-surprise-chart | Tenneco Inc Quote
Segmental Highlights
The Clean Air division’s revenues were $1,545 million compared with the year-earlier figure of $1,779 million. The figure, however, surpassed the Zacks Consensus Estimate of $1,477 million. Adjusted EBITDA totaled $104 million in the quarter, down from the year-ago quarter’s $140 million.
Revenues in the Ride Performance division came in at $588 million compared with the $733 million recorded in the year-ago quarter. The reported figure, however, outpaced the Zacks Consensus Estimate of $563 million. Adjusted EBITDA totaled $16 million in the first quarter, down 48.4% year over year.
The Powertrain division’s revenues summed $997 million, down from the $1,175 million recorded in the corresponding quarter of 2019. The figure, however, beat the Zacks Consensus Estimate of $914 million. Adjusted EBITDA totaled $90 million in the reported quarter, down 22.4% year over year.
The Motorparts division’s revenues were $706 million, which fell from the $797 million generated in first-quarter 2019. The figure also missed the Zacks Consensus Estimate of $717 million. Adjusted EBITDA totaled $73 million in the March-end quarter, down from the $90 million recorded in first-quarter 2019.
Financial Position
Tenneco had cash and cash equivalents of $767 million as of Mar 31, 2020, compared with $564 million as of Dec 31, 2019. Long-term debt was $5,837 million, up from $5,371 million as of Dec 31, 2019.
Outlook
Tenneco suspended the 2020 guidance as it expects the coronavirus pandemic’s impact to strain its operations in the days to come.
Zacks Rank & Stocks to Consider
Tenneco currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Veoneer, Inc. VNE, Unique Fabricating, Inc. UFAB and Modine Manufacturing Company MOD, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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