Industrial cleaning equipment manufacturer Tennant Company will be announcing earnings results tomorrow before market hours. Here's what to look for.
Tennant met analysts' revenue expectations last quarter, reporting revenues of $311 million, up 1.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Is Tennant a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Tennant's revenue to grow 1.6% year on year to $327 million, slowing from the 14.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.72 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tennant has missed Wall Street's revenue estimates twice over the last two years.
Looking at Tennant's peers in the water infrastructure segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Energy Recovery delivered year-on-year revenue growth of 31.3%, beating analysts' expectations by 18.6%, and Mueller Water Products reported revenues up 9.2%, topping estimates by 8.2%. Energy Recovery traded up 20.6% following the results while Mueller Water Products was also up 6%.
Read our full analysis of Energy Recovery's results here and Mueller Water Products's results here.
Investors in the water infrastructure segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Tennant's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $141.5 (compared to the current share price of $96.52).
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