U.S. Markets open in 3 mins
  • S&P Futures

    4,689.25
    +4.25 (+0.09%)
     
  • Dow Futures

    35,738.00
    +25.00 (+0.07%)
     
  • Nasdaq Futures

    16,327.25
    +9.25 (+0.06%)
     
  • Russell 2000 Futures

    2,260.50
    +6.60 (+0.29%)
     
  • Crude Oil

    71.88
    -0.17 (-0.24%)
     
  • Gold

    1,783.20
    -1.50 (-0.08%)
     
  • Silver

    22.38
    -0.15 (-0.66%)
     
  • EUR/USD

    1.1311
    +0.0038 (+0.3393%)
     
  • 10-Yr Bond

    1.4940
    +0.0140 (+0.95%)
     
  • Vix

    21.91
    -6.04 (-21.61%)
     
  • GBP/USD

    1.3210
    -0.0032 (-0.2404%)
     
  • USD/JPY

    113.8600
    +0.3200 (+0.2818%)
     
  • BTC-USD

    49,629.66
    -1,411.54 (-2.77%)
     
  • CMC Crypto 200

    1,298.18
    -143.58 (-9.96%)
     
  • FTSE 100

    7,350.09
    +10.19 (+0.14%)
     
  • Nikkei 225

    28,860.62
    +405.02 (+1.42%)
     

Tenneco (TEN) Shares Barely Move Since Q2 Earnings Miss

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Tenneco’s TEN shares have not witnessed any noticeable change in its price movement since second-quarter 2021 earnings announcement on Aug 5, before opening bell. While the Illinois-based auto supplier missed the Zacks Consensus Estimate for earnings by a whisker, revenues surpassed the mark. It not only posted better year-over-year results but also raised its full-year revenue projections.

The company reported adjusted earnings of 84 cents per share for second-quarter 2021, turning around from the year-ago quarter’s loss of $2.15 a share but missing the Zacks Consensus Estimate by a penny. Weaker-than-expected contribution from the Motorparts segment led to the underperformance. Revenues of $4,583 million topped the Zacks Consensus Estimate of $4,399 million and improved 73.7% year over year.

Tenneco Inc. Price, Consensus and EPS Surprise

Tenneco Inc. Price, Consensus and EPS Surprise
Tenneco Inc. Price, Consensus and EPS Surprise

Tenneco Inc. price-consensus-eps-surprise-chart | Tenneco Inc. Quote

Segmental Performance

For the April-June period, the Clean Air division’s revenues summed $2,024 million, higher than the year-ago figure of $1,140 million. The metric surpassed the Zacks Consensus Estimate of $1,969 million. Adjusted EBITDA totaled $146 million for the quarter, significantly up from the year-ago quarter’s $38 million. The reported EBITDA topped the consensus metric of $133 million.

Revenues in the Performance Solutions division amounted to $715 million, increasing from the $378 million recorded in the year-earlier period and surpassing the consensus mark of $683 million. Adjusted EBITDA totaled $42 million in the June-end quarter, versus loss of $34 million incurred in the prior-year quarter. The reported EBITDA beat the consensus mark of $41.15 million.

The Powertrain division’s revenues amounted to $1,050 million for the second quarter, rising from $560 million in the year-earlier period and outpacing the consensus mark of $995 million. Adjusted EBITDA totaled $102 million for the reported quarter, beating the consensus mark of $90 million and reversing the loss of $28 million incurred in the comparable year-ago period.

The Motorparts division’s revenues were $794 million, up from the $559 million generated in second-quarter 2020. The reported figure beat the Zacks Consensus Estimate of $758 million. Adjusted EBITDA totaled $118 million for the quarter, up from the $71 million generated in the corresponding period of 2020. The metric, however, fell short of the consensus mark of $121 million.

Financials & Outlook

Tenneco — which shares space with Magna International MGA, Meritor MTOR and American Axle & Manufacturing AXL — had cash and cash equivalents of $713 million as of Jun 30, 2021. Long-term debt totaled $5,081 million, down from $5,111 million as of Mar 31, 2021. During the second quarter, the company’s net cash provided by operating activities was $73 million compared with the year-earlier quarter’s outflow $179 million.

Backed by improving margins across all segments and better free cash flow performance on account of the firm’s Accelerate+ program, Tenneco has raised its 2021 sales outlook. Full-year revenues are now envisioned within $18.3-$18.6 billion, up from the prior outlook of $17.6-$18.1 billion. The company expects 2021 adjusted EBITDA in the band of $1.36-$1.44 billion, higher than the previous guidance of $1.35-$1.45 billion. Management anticipates net debt to be less than $4.2 billion at the end of 2021, down from the $4.5 billion recorded as of Dec 31, 2020.

For the second half of 2021, Tenneco — which currently carries a Zacks Rank #3 (Hold) — projects revenues between $9 billion and $9.3 billion. Adjusted EBITDA is forecast in the band of $616-$696 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report

Tenneco Inc. (TEN) : Free Stock Analysis Report

Magna International Inc. (MGA) : Free Stock Analysis Report

Meritor, Inc. (MTOR) : Free Stock Analysis Report

To read this article on Zacks.com click here.