Tennant raises FY adjusted EPS view to $1.95-$2.10 from $1.85-$2.05
Consensus is $2.00 Raises FY revenue view to $1.1B-$1.12B from $1.08B-$1.11B, consensus $1.11B. Tennant is increasing the low and high end of the previously announced 2018 full year guidance range for net sales by $20 million and $10 million, respectively. The company anticipates net sales to be in the range of $1.10 billion to $1.12 billion, up 9.7 percent to 11.7 percent compared to the prior year and reflecting organic growth of 4.0 percent to 4.5 percent. Based on the anticipated higher level of sales, Tennant is increasing the low and high end of adjusted earnings per share to a range of $1.95 to $2.10. This excludes $4.0 million to $5.0 million of special items, including IPC acquisition and integration costs. The company also is increasing the 2018 full year reported GAAP earnings to a range of $1.75 to $1.90 per share and adjusted EBITDA to a range of $117 million to $121 million. The Fly notes that Tennant previously raised its FY guidance in April. Tennant's 2018 annual financial outlook includes the following additional assumptions: Reasonable growth in all regions, especially strategic accounts in North America; Gross margin performance of approximately 41.0 percent; R&D expense of approximately 3.0 percent of sales; Capital expenditures in the range of $25 million to $30 million; and An effective tax rate of approximately 20 percent.