Tenneco Inc.


TEN

incurred an adjusted loss of 11 cents per share in first-quarter 2022. The Zacks Consensus Estimate was pegged at earnings of 67 cents. The downside stemmed from lower-than-expected EBITDA from all four segments. The bottom line slipped 178.6% from the year-ago earnings of 14 cents a share. Revenues of $4,649 million topped the Zacks Consensus Estimate of $4,475.9 million but declined around 1.7% year over year.

Segmental Performance

In the reported quarter, the Clean Air division’s revenues summed $2,103 million, lower than the year-ago figure of $2,124 million. The figure, however, surpassed the Zacks Consensus Estimate of $1,994 million. Adjusted EBITDA totaled $110 million in the quarter, down from $157 million reported in the prior-year quarter and missed the consensus estimate of $133 million.

Revenues in the Performance Solutions division amounted to $793 million, increasing from $787 million recorded in the year-earlier period and surpassing the consensus mark of $749 million. Adjusted EBITDA totaled $21 million in the March quarter, decreasing from $47 million in the prior-year quarter. The reported EBITDA also missed the consensus mark of $38.02 million.

The Powertrain division’s revenues amounted to $1,031 million in the quarter, falling from $1,101 million in the year-earlier period but outpacing the consensus mark of $1,022 million. Adjusted EBITDA totaled $72 million, missing the consensus mark of $94 million and declining from $126 million in the year-ago period.

The Motorparts division’s revenues were $722 million, up from $719 million a year ago but lagged the Zacks Consensus Estimate of $742 million. Adjusted EBITDA totaled $92 million in the quarter, falling from $105 million in the prior-year quarter and missing the consensus mark of $107 million.

Financials & Outlook

Tenneco had cash and cash equivalents of $636 million as of Mar 31, 2022, down from $859 million as of Dec 31, 20201. Long-term debt totaled $4,976 million, down from $5,018 million as of Dec 31, 2021. During the reported quarter, the company’s net cash used by operating activities was $87 million compared with the year-earlier quarter’s $50 million. The company had a liquidity of $2.1 billion at the quarter-end, consisting of $641 million in cash and $1.4 billion available in revolving credit facility.

Tenneco has not provided any guidance for 2022 on account of its pending takeover by Apollo Global Management, which was announced in February 2022.

Zacks Rank & Key Picks

TEN currently carries a Zacks Rank #3 (Hold).

Better-ranked players in the auto space include

BRP Group, Inc.


DOOO

, sporting a Zacks Rank #1 (Strong Buy) and

Dorman Products


DORM

and

Tesla Inc.


TSLA

, each carrying a Zacks Rank #2 (Buy), currently. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.

BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 13.5% over the past year.

Dorman Products has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.7% upwards in the past 60 days.

Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 5.8% over the past year.

Tesla has an expected earnings growth rate of 66.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 18.7% upward in the past 60 days.

Tesla’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 41.27%, on average. The stock has gained 29.9% over the past year.

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