Tennant Co. (TNC) raises full-year guidance after continued volume growth in Q2

Tennant Co. (NYSE: TNC) second-quarter earnings and revenue beat analyst consensus expectations, while it also raised its full-year guidance on Friday, sending its share price over 4% higher.

The cleaning solutions company reported Q2 EPS of $1.86, $0.70 better than the analyst estimate of $1.16, while revenue for the quarter came in at $321.7 million, up 14.8% YoY and above the consensus estimate of $291.67 million.

The company said its revenue rise was primarily due to strong pricing realization and continued volume growth.

TNC shares are currently trading at $84.85 after initially hitting a high of $86.99 per share earlier in the session.

The company was also able to reduce its backlog by $43 million during the quarter as supply-chain improvements drove a sequential increase in production.

"Our strong organic net sales growth and expanding operating margins are the result of the meaningful actions we have taken over the course of the past several quarters," said Dave Huml, Tennant President and Chief Executive Officer.

"Looking ahead, I am pleased to say that we are entering the second half of the year with resilient demand, substantial order backlog, and expectations for continued improvements in our supply chain. This backdrop, coupled with our profitable growth in the first half of the year, underpins our confidence in raising our full-year 2023 guidance."

Tennant now sees FY2023 revenue between $1.2 billion and $1.25 billion versus the consensus of $1.15 billion, up from the previously guided range of $1.115 billion to $1.155 billion.

By Sam Boughedda

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