Tenneco Up on Buyback Announcement - Analyst Blog
January 20 2014 - 1:50PM
Zacks
Share price of Tenneco Inc. (TEN) increased as
much as roughly 0.7% after the company’s Board authorized a share
repurchase program, authorizing it to buy back up to 400,000 shares
over the next 12 months. This program is expected to neutralize the
dilution from shares of restricted stock and stock options which
were issued to employees this year under Tenneco’s long-term
compensation plan.
The share repurchase authorization indicates Tenneco’s strong
liquidity position. The company had $276 million of cash and cash
equivalents as of Sep 30, 2013. Tenneco intends to repurchase the
shares either in open market or through privately negotiated
transactions using cash from operations.
This is not the first share repurchase program undertaken by
Tenneco. It has undertaken such buybacks in 2011, 2012 and 2013. In
addition, Tenneco remains focused on improving its financial
position and continue to make strategic investments.
Tenneco reported third-quarter 2013 results on Oct 28. It reported
adjusted earnings per share of 99 cents, which surpassed the Zacks
Consensus Estimate of 95 cents. Earnings per share surged 16.5%
from 85 cents in the third quarter of 2012.
Revenues increased 10% year on year to $1.96 billion, beating the
Zacks Consensus Estimate of $1.95 billion. The increase was
attributable to higher revenues from all operating segments.
Tenneco is a leading manufacturer and supplier of emission control,
ride control systems, and systems for the automotive original
equipment manufacturers and the aftermarket. Currently, the company
retains a Zacks Rank #2 (Buy).
Some other stocks that are performing well in the industry where
Tenneco operates include Visteon Corporation (VC),
Gentex Corp. (GNTX) and American Axle
& Manufacturing Holdings Inc. (AXL). While Visteon and
Gentex sport a Zacks Rank #1 (Strong Buy), American Axle has the
same Zacks Rank as Tenneco.
AMER AXLE & MFG (AXL): Free Stock Analysis Report
GENTEX CORP (GNTX): Free Stock Analysis Report
TENNECO INC (TEN): Free Stock Analysis Report
VISTEON CORP (VC): Free Stock Analysis Report
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