Why Tenneco Popped 19% Wednesday Morning
Shares of Tenneco (NYSE: TEN), a manufacturer of automotive products for original equipment manufacturers (OEMs) and aftermarket consumers, jumped as much as 19.2% Wednesday morning before giving back some gains. It had delivered a solid fourth-quarter performance.
Starting from the top, Tenneco's fourth-quarter revenue increased 12% over the prior year to reach $4.7 billion. That result easily topped analysts' estimates calling for $4.3 billion. Adjusted net income also checked in with a large beat at $1.68 per share, compared to analysts' estimates of $1.01 per share. Management's "Acelerate+" program drove margin expansion and is on pace to hit $265 million in annual run rate savings by the end of 2021. With margin improvements and strong cash flow generation, the company was able to reduce its net debt by $460 million from the end of the previous year.
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Source Fool.com
