Shares of vehicle supplier Tenneco (NYSE: TEN) jumped as much as 32.7% in trading Tuesday after reporting second-quarter 2019 results. Shares gave back some of those gains as the day went on but were still up 15.3% at 3:05 p.m. EDT.
Quarterly revenue jumped 78% to $4.5 billion, and net income was $26 million, or $0.32 per share, down from $47 million a year ago. Adjusted net income was up $1 million to $97 million, or $1.20 per share, down from $1.84 per share a year ago.
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Revenue topped estimates slightly, but the real surprise was the bottom line. Analysts were only expecting earnings of $0.93 per share, so the company easily topped that figure.
Management also said that revenue for the full year would be between $17.6 billion and $17.8 billion, with adjusted EBITDA of $1.52 billion to $1.57 billion.
Tenneco steadily grew into strong markets like light vehicles, commercial trucks, and off-highway vehicles. The company outgrew the overall market by 9 percentage points, gaining valuable market share. Cost controls also helped adjusted EBIT jump to $141 million versus $111 million a year ago. With a broader footprint and more time to incorporate the Federal-Mogul business, I think the company has more margin expansion ahead.
This article was originally published on Fool.com