Tenneco Looking Almost Too Good Lately
Stephen Simpson, CFA
Stephen Simpson, CFA
Tenneco Zigging When Others Zag
Stephen Simpson, CFA
Stephen Simpson, CFA
Today, 5:30 PM
Tue, Oct. 11, 9:33 AM
- The German Bundesrat has fired a warning shot across the automobile industry that is yet another indication that seismic changes could be coming down the road.
- In a vote intended to pressure the EU, the Bundesrat approved a measure to ban gas and diesel vehicles by 2030. The Bundesrat doesn't set policy across Europe, but is considered influential.
- Naturally, the fact that the push is coming from the home of Mercedes, BMW, and Volkswagen also adds a degree of intrigue to the news and the underlying electrification push out of the trio.
- Wall Street analysts with their 1-year price target mindset haven't weighed in on the development, but there's plenty of discussion on Seeking Alpha about the implications.
- Previously: Germany says nein to internal combustion engines (Oct. 10)
- Related auto parts stocks: ACW, ALSN, ALV, AXL, BWA, CAAS, CPS, DAN, DLPH, DORM, FDML, FENX, GNTX, JCI, LDL, LEA, LKQ, MBLY, MLR, MNRO, MOD, MPAA, MPG, MTOR, PLOW, SMP, SRI, STRT, SUP, STRT, TEN, THRM, TEN, TOWR, UFAB, VC, VOXX, WBC, ZX.
Wed, Sep. 21, 10:09 AM
- Tenneco (TEN +1.8%) says it's supplying 2016 Ford F-650/F-750 medium duty trucks with full exhaust systems. The commercial-grade trucks are currently in production.
- "The emission control technologies featured on both the diesel and gasoline engines of the Ford F-650 and F-750 demonstrate the strength of Tenneco’s full suite of aftertreatment solutions and our ability to help deliver the fuel economy and performance these engines require," says a top Tenneco exec.
- Source: Press Release
Wed, Aug. 31, 10:26 AM
- U.S. auto sales are expected to show a decline of 2% to 5% for August amid a dialing back of discounting activity, according to the range of forecasts from Kelley Blue Book, Edmunds, J.D. Power, and LMC Automotive. General Motors is poised to report a loss of market share as its plan to cut out fleet sales impacts volume.
- Bloomberg estimates the seasonally adjusted selling rate for the month will be 17.2M, down from 17.9M last month.
- The sales dip isn't necessarily a bottom line drag for the sector due to reduced discounting and the increasing mix of higher-profit SUVs and trucks. But higher profit hasn't lifted automaker stocks this year, with the group having trouble gaining traction and trading with low forward PE multiples (GM 5.5, Ford 6.8, Honda 10.5, Toyota 10.9).
- Auto parts stocks (LEA, TEN, BWA, DAN, MPAA, CPS, DLPH, AXL, TOWR, ACW, FENX, MTOR, THRM, SMP, ALV, MOD, SRI) will be on watch tomorrow when the reports roll in as the sector frequently sees some extra volatility on days U.S. auto sales are disclosed.
- Related stocks: GM, FCAU, F, TM, HMC, OTCPK:NSANY, OTCPK:VLKAY, OTCPK:BMWYY, OTCPK:DDAIF, TSLA, OTCPK:MZDAY, TSLA, OTC:HYMLF, OTCPK:FUJHY, RACE.
Tue, Aug. 16, 9:35 AM
- Ford (NYSE:F) says it will make an announcement at 2:00 p.m. EDT to discuss the company's expanding presence in Silicon Valley and autonomous vehicle development.
- The automaker will also host a conference call with analysts at 4:00 p.m. to discuss its smart mobility ambitions. The roster of Ford execs on the call include global development and technology heavyweights.
- Earlier today on CNBC, CEO Mark Fields joined the group of leaders predicting a seismic change in the automobile industry.
- "Our view is autonomous vehicles could have just as much [of an] impact on society as Ford's moving assembly line did 100 years ago," Fields noted. In an important revelation, Fields says more customers are telling the company that they are interested in the autonomous driving option -- an anecdote that runs counter to the view of some that drivers don't want to give up the wheel (partially or fully).
- Field hinted that the scheduled autonomous announcement for today will be significant. It's a development that could have some bearing on the self-driving plans of General Motors (NYSE:GM), Audi (OTCPK:VLKAY), Tesla Motors (NASDAQ:TSLA), Nissan (OTCPK:NSANY), and Toyota (NYSE:TM). Lyft (Private:LYFT) and Uber (Private:UBER) are also feeling their way around the autonomous driving landscape. Plenty of auto suppliers such as Mobileye (NYSE:MBLY), Autoliv (NYSE:ALV), BorgWarner (NYSE:BWA), Tenneco (NYSE:TEN), Dana (NYSE:DAN), STMicroelectronics (NYSE:STM), and Delphi Automotive (NYSE:DLPH) will also be listening intently to details on Ford's plans.
- Previously: Ford pushes the accelerator on autonomous vehicles (Aug. 16)
Tue, Aug. 2, 10:33 AM
- Auto parts stocks after lower after Detroit automakers disappoint with July U.S. sales growth.
- The sector has been on watch since last week when Ford warned on a plateauing of the U.S. automobile market.
- Leading decliners include Lear (LEA -4.7%), Tenneco (TEN -3.8%), BorgWarner (BWA -3.8%), Dana Holding (DAN -3.2%), Motorcar Parts of America (MPAA -3.3%), Cooper-Standard Holdings (CPS -2.9%), and Delphi Automotive (DLPH -2.4%).
Fri, Jul. 29, 7:32 AM
Thu, Jul. 28, 5:30 PM
Thu, Jul. 21, 11:57 AM
- Auto parts stocks are rallying after strong reports from Dana Holding (DAN +9.7%), Johnson Controls (JCI +3.4%), and General Motors.
- GM showed strong results in North America and issued reassuring guidance, while both Dana and Johnson beat on the top line.
- Sector movers: BorgWarner (BWA +2%), Accuride (ACW +3.2%), Fenix Parts (FENX +4.8%), Tenneco (TEN +3.6%), Westport Fuel Systems (WPRT +4%), Cooper-Standard Holdings (CPS +2.8%), and Meritor (MTOR +2.2%).
- Previously: GM +4% as profit surges, full-year guidance raised (July 21)
- Previously: More on Dana Holding's Q2 (July 21)
Mon, Jun. 6, 8:26 AM
- Tenneco Inc. (NYSE:TEN) announces it commenced a cash tender offer for any and all of its outstanding $500M 6 7/8% Senior Notes due 2020.
- The tender offer will expire on June 10, 2016.
- Holders of notes who validly tender their notes will be eligible to receive in cash $1,038.10 for each $1,000 principal amount of notes that are accepted by Tenneco.
- Tenneco has engaged BofA Merrill Lynch to act as dealer manager in connection with the tender offer.
- Source: Press Release
Tue, Apr. 26, 5:58 PM
- Tenneco (NYSE:TEN), which had been expected to suffer a rough ride in the wake of Volkswagen's diesel emissions scandal, said in today's earnings call that it expects to benefit from increased regulations on automakers; shares closed +14% in today's trade.
- The auto parts supplier posted a solid Q1 earnings beat and indicated its outlook will brighten further, saying it expects annual revenue growth of 6%, excluding currency fluctuations.
- TEN sees its growth accelerating in both 2017 and 2018 "primarily due to new light vehicle emissions regulations beginning to take effect in North America and Europe."
- BorgWarner (NYSE:BWA) and Delphi Automotive (NYSE:DLPH) were among other emissions-related suppliers under pressure in the wake of Volkswagen's disclosure; the two companies report their earnings over the next 10 days.
- Now read Tenneco: Buy a high quality business at a low valuation
Tue, Apr. 26, 9:53 AM
- Tenneco (TEN +8.1%) reports revenue rose 9% if the impact of currency swings is backed out in Q1.
- Clean Air division revenue increased 7.8% to $1.515B (+10% after excluding the currency impact).
- Ride Performance division revenue grew 0.5% to $621M (+8% after excluding the currency impact).
- Original equipment light vehicle revenue expanded 7.6% to $1.577B.
- Global aftermarket revenue increased 8% due to higher sales in Europe, South America and North America.
- Adjusted EBIT improved 30 bps to 6.5%.
- Q2 Guidance: Revenue: +6% (excluding currency impact).
Tue, Apr. 26, 7:32 AM
- Tenneco (NYSE:TEN): Q1 EPS of $1.17 beats by $0.06.
- Revenue of $2.14B (+5.9% Y/Y) beats by $60M.
Mon, Apr. 25, 5:30 PM
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Fri, Apr. 1, 11:14 AM
- Auto parts stock are lower after March U.S. auto sales from the Detroit Three fall short of the estimates of research firms.
- Leading decliners include Metaldyne (MPG -6.7%), Dana Holding (DAN -4.9%), American Axle & Manufacturing (AXL -3.4%), Tenneco (TEN -3.6%), Lear Corp. (LEA -3.1%), Meritor (MTOR -2.4%), and Gentherm (THRM -2.1%).
- Now read The U.S. Auto Market: How Many Brands, How Many Models?
Tue, Feb. 9, 9:03 AM
- Tenneco (NYSE:TEN) reports revenue rose 8% if the impact of currency swings is backed out in Q4.
- Clean Air division revenue grew 3.9% to $1.449B (+9% after excluding the currency impact).
- Ride Performance division revenue fell 4.4% to $582M (+5% after excluding the currency impact).
- Original equipment light vehicle revenue +3.9% to $1.522B.
- Adjusted EBIT improved 50 bps to 7.3%.
- Q1 Guidance: Revenue: +5% (excluding currency impact).
- FY2016 Guidance: Revenue: +5% (excluding currency impact); Capex: $300M to $330M; Interest expense: $75M; Tax rate: 31% to 32%.