) hit new 52-week high of $45.02 on May 30, which is above its
previous level of $44.44. Their last closing price of $44.36
represented a solid one-year return of 63.4% and year-to-date
return of 21.5%.
Tenneco, based in Lake Forest, IL, is a leading manufacturer and
supplier of emission control, ride control systems, and systems
for the automotive original equipment manufacturers (OEMs) and
the aftermarket. It has a market cap of $2.7 billion. Average
volume of shares traded over the last three months stood at
Shares of the company started escalating following its improved
first quarter results and promising guidance announced on Apr 29.
Tenneco reported a 9.1% increase in adjusted earnings per share
to 72 cents in the first quarter of 2013 from 66 cents a year
ago, surpassing the Zacks Consensus Estimate by 7 cents. Net
income augmented 7.3% to $44.0 million from $41.0 million a year
On a reported basis, the company's profit was $54.0 million or 88
cents per share compared with $30.0 million or 49 cents in the
first quarter of 2012.
Revenues increased marginally to $1.90 billion, beating the Zacks
Consensus Estimate of $1.84 billion. The year-over-year increase
in revenues was attributable to higher revenues from Clean Air
division, partially offset by decline in revenues from Ride
Based on IHS forecasts, the company expects that total light
vehicle production will increase 3% in the second quarter of
2013, with a 4% rise in North America, 8% hike in China, 9%
increase in South America and 3% boost in India. However, it will
decline 3% in Europe due to the economic uncertainty.
Currently, shares of Tenneco retain a Zacks Rank #3, which
translates to a short-term rating (1-3 months) of Hold. Some
other stocks that are performing well in the industry include
STRATTEC Security Corporation
Tower International Inc.
). They carry a Zacks Rank #1 (Strong Buy).
STRATTEC SEC CP (STRT): Free Stock Analysis
TENNECO INC (TEN): Free Stock Analysis Report
TOWER INTL INC (TOWR): Free Stock Analysis
VISTEON CORP (VC): Free Stock Analysis Report
To read this article on Zacks.com click here.