Tennant Co. (NYSE: TNC) reported Q1 EPS of $0.49, $0.09 better than the analyst estimate of $0.40. Revenue for the quarter came in at $262.5 million versus the consensus estimate of $279.65 million.

• Net sales of $262.5 million in the first quarter
• First-quarter GAAP diluted earnings per share of $0.29; adjusted diluted EPS of $0.49 per share
• Adjusted EBITDA growth of 17 percent to $29.5 million, up 200 basis points to 11.2 percent of sales
• Company reaffirms 2019 guidance for net sales, Adjusted EBITDA and EPS

Chris Killingstad, Tennant Company’s president and chief executive officer, said, “Our margin improvement initiatives and pursuit of profitable top-line growth are key focus areas for Tennant. The first-quarter results reflect progress in these areas, as well as some challenging sales comparisons. During the quarter, our sales reflected a combination of factors: difficult comparisons to the robust amount of strategic account activity in last year’s first quarter, industry softness in the United Kingdom, and the negative impact of currency. These factors were partially offset by strength in Latin America and across Asia Pacific. We are encouraged by our profitability gains during the quarter, which reflect our ongoing, broad-based margin improvement efforts, a favorable mix within our sales channels, and our disciplined management of controllable expenses. Overall, we are pleased with our earnings performance during the first quarter and are confident in our underlying growth and profitability outlook.”

GUIDANCE:

Tennant Co. sees FY2019 EPS of $2.30-$2.50, versus the consensus of $2.40. Tennant Co. sees FY2019 revenue of $1.15-1.17 billion, versus the consensus of $1.16 billion.

Killingstad concluded, “Our approach to creating long-term value for our shareholders prioritizes driving profitable growth by focusing our sales efforts and investments on the most value-enhancing opportunities, building on our position as an innovation leader, and deepening our operational rigor and financial strength. We have initiatives in place to address each of these key areas and we expect to make continued progress in 2019 and beyond.” For 2019, Tennant reaffirms the following previously provided guidance:

• Net sales of $1.15 billion to $1.17 billion, reflecting organic sales growth of 2 to 3 percent;
• Reported GAAP earnings in the range of $2.05 to $2.25 per diluted share;
• Adjusted EPS of $2.30 to $2.50 per diluted share;
• Adjusted EBITDA of $129 million to $133 million;
• Capital expenditures in the range of $40 million to $45 million; and
• An effective tax rate of approximately 20 percent.

For earnings history and earnings-related data on Tennant Co. (TNC) click here.