Tennant Company (NYSE:TNC) misses by $0.06, misses on revenues; guides FY14 EPS below consensus, revenues in-line. Company posted 4rth quarter (Dec) earnings of $0.65 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus Estimate of $0.71; revenues rose 4.1% year/year to $195.1 million versus the $197.35 million consensus, on higher volume across all of Tennant’s product categories. Unfavorable foreign currency exchange reduced consolidated net sales by ~1 percent. Organic net sales, which exclude the impact of foreign currency exchange (and acquisitions when applicable), increased ~5.1 percent.
Company issued mixed guidance for Fiscal Year 2014, sees EPS of $2.50-2.80 versus. $2.83 Capital IQ Consensus Estimate; sees FY14 revenues of $780-800 million versus. $793.65 million Capital IQ Consensus Estimate. Company anticipates that its 2014 financial results will be stronger in the second half of the year, as its growth investments begin to generate incremental revenues and profits.
The modest economic improvement in North America and Europe, and steady growth in emerging markets; unfavorable foreign currency impact on sales for the full year of approximately 1 percent; Gross margin performance in the range of 43% to 44%.
“We had record revenues for a fourth quarter, although they were slightly below our expectations,” said CEO Chris Killingstad. “In order to accelerate future growth, we intentionally ramped up key strategic investments in anticipation of higher sales. Going forward, we expect our growth initiatives to produce clear benefits in 2014 and beyond.”
Killingstad told analysts during a conference call Tuesday that fourth-quarter results were strongest in North America and Latin America. However, results in Europe proved “somewhat constrained” due to “challenging economic conditions.”
Tennant Company (NYSE:TNC) shares fell -2.07% to $57.80 in current session.