Tenneco (NYSE: TEN) reported Q4 EPS of $1.39, $0.25 better than the analyst estimate of $1.14. Revenue for the quarter came in at $2.03 billion versus the consensus estimate of $2.03 billion.

Full year 2016

As previously announced, the company expects total revenue to grow 5% in 2016, excluding the impact of currency, driven by:

Incremental light vehicle Clean Air revenue from 2015 launches and new launches in 2016;
Incremental revenue from Monroe® Intelligent Suspension programs with four new launches in 2016 and the continued ramp-up on programs launched in 2015;
Commercial truck and off-highway emissions regulations with additional content on off-highway Tier 4f and Stage 4 programs in North America and Europe, incremental revenue from 2015 launches of a North America medium-duty commercial truck and an off-highway program in Japan, increasing market share with commercial truck customers in China, and initial launches with commercial truck customers in India to comply with BS IV regulations.

The company’s revenue growth estimate for 2016 assumes aggregate industry production growth of 3% including a 3% increase in global light vehicle production, and a 1% decline in commercial truck and off-highway equipment production.

In 2016, Tenneco expects:

Capital expenditures between $300 and $330 million;
Annual interest expense of about $75 million;
Cash taxes between $140 million and $160 million;
Full year tax rate between 31% to 32%.

Three year revenue outlook

In 2017 and 2018, Tenneco expects annual revenue growth of 6% to 8%, and 7% to 9% respectively, outpacing production by 3% to 5% each year as new light vehicle emissions regulations begin to phase-in in North America and Europe. These estimates also exclude the impact of currency.

“We expect solid revenue growth of 5% in 2016 based on what we see in the markets today and accelerating revenue growth in 2017 and 2018 as new light vehicle emissions regulations begin to take effect in North America and Europe. With these revenue estimates, we expect to continue outpacing industry production in our end markets, all driven by emissions regulations, and growing demand for Tenneco’s advanced Ride Performance technologies and aftermarket products," said Sherrill. “We also expect continued margin improvement and remain very focused on generating cash for growth investments, balance sheet strength and returns to our shareholders.”

For earnings history and earnings-related data on Tenneco (TEN) click here.