Share price of
) 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
American Axle & Manufacturing Holdings Inc.
). 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
GENTEX CORP (GNTX): Free Stock Analysis
TENNECO INC (TEN): Free Stock Analysis Report
VISTEON CORP (VC): Free Stock Analysis Report
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