Why Tenneco Stock Tanked at the Open on Aug. 6
Shares of automotive parts specialist Tenneco (NYSE: TEN) fell out of bed when Wall Street opened for the day, dropping a huge 18% in the first minutes of trading. Although the stock pared those losses, it was still down by a painful 13% or so at roughly 3 p.m. EDT. Investors were clearly not pleased with the company's earnings, which were released before the trading day began.
Tenneco suffered a roughly 40% sales decline in the second quarter of 2020 compared to the same period in 2019. Each of its five main product categories got hit, so there was basically nowhere to hide, despite management highlighting that its diversification helped in the quarter. On the bottom line Tenneco turned in a $4.30 per share loss, compared to a quarterly profit of $0.32 a share in the same stanza of 2019. Even taking out one-time charges, the company still lost $2.15 per share in the second quarter. No matter how you cut things, it was ugly.
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Source Fool.com
