Why Shares of Tenneco Are Down Today

Shares of Tenneco (NYSE: TEN) fell more than 15% on Monday after the auto parts manufacturer released quarterly results. The company's earnings fell short of estimates, causing investors to run for the exits.

Tenneco before markets opened Monday reported third-quarter adjusted earnings of $0.33 per share, missing analyst expectations for $0.44 per share in earnings. Revenue, at $4.3 billion, was down 2% year over year but came in ahead of the consensus $3.9 billion estimate.

Without adjustments, Tenneco reported a net loss in the quarter of $499 million, or $6.12 per share. That figure includes a non-cash, tax-valuation allowance charge of $523 million. In layman's terms, that means Tenneco is assuming it won't make enough in future years to fully take advantage of losses that it had hoped to use to offset future taxes.

Source Fool.com