Why Tennant Company Stock Just Crashed 11%
Shares of cleaning-equipment manufacturer Tennant Company (NYSE: TNC) are down 11.3% as of 1:50 p.m. EDT, having recovered (somewhat) from an early-morning crash that sent the stock down as much as 13.5%.
This being earnings season, you might expect that an earnings report is to blame -- and you'd be right. This morning, Tennant reported its fiscal second-quarter 2017 financials. Sales were up a healthy 25% over last year's Q2 at $270.8 million, and ahead of the $269 million that analysts had been modeling.
Unfortunately, a big $0.27-per-share pre-tax charge for "acquisition costs related to Tenant's acquisition" of IPC Group, a $0.22 charge for "acquisition-related financing costs," a $0.25 charge for "acquisition-related inventory step-up flow" through, and a final penny-a-share charge "related to a pension plan settlement" reduced earnings by a total of $0.75 per share, and turned what should have been a profitable quarter for Tennant into a $0.15-per-share loss instead.
Source: Fool.com
