Tenneco Shares Plummet After FY21 Outlook Cut

  • Tenneco Inc TEN reported third-quarter FY21 sales growth of 1.8% year-on-year, to $4.33 billion, beating the analyst consensus of $4.09 billion.
  • Motorparts sales increased 5.3% Y/Y, and Powertrain sales rose 1.4%.
  • Operating expenses rose 4.2% Y/Y to $4.2 billion.
  • Adjusted EBITDA was $279 million versus $388 million a year ago, and the adjusted EBITDA margin contracted 330 basis points to 8.5%.
  • EPS of $0.17 missed the analyst consensus of $0.26.
  • The company held $595 million in cash and equivalents as of September 30, 2021. Operating cash flow for the quarter was a use of $48 million.
  • "Actions taken during the quarter helped mitigate the effects of the volatile light vehicle production environment driven by the semiconductor shortage along with inflationary pressures and other pandemic-related challenges," said Brian Kesseler, Tenneco's CEO.
  • Outlook: Tenneco has cut FY21 revenue to $17.75 billion - $17.85 billion (prior view $18.3 billion - $18.6 billion) against the consensus of $17.83 billion.
  • It lowered the Adjusted EBITDA outlook to $1.25 billion - $1.28 billion from the prior view of $1.36 billion - $1.44 billion.
  • Price Action: TEN shares are trading lower by 12.1% at $12.22 on the last check Friday.
Posted In: Briefswhy it's movingEarningsNewsGuidanceSmall CapMoversTrading Ideas