Tenneco’s stock jumps after raised revenue outlook, advisor retained as part of strategic review

Tenneco’s stock jumps after raised revenue outlook, advisor retained as part of strategic review

Shares of Tenneco Inc. ran up 4.1% in premarket trading Monday, after the truck parts maker said it had retained Lazard as an advisor as it continues to review strategic alternatives to maximize shareholder value. In addition to its current plan to spin off its aftermarket and ride performance business, the company is considering the sale of DRiV and/or its powertrain technology business, while deals involving other lines of business are being considered as well. The company said it now expects 2019 revenue to be “slightly higher” than the guidance provided in October of $17.25 billion to $17.35 billion, which compares with the FactSet consensus of $17.29 billion. Tenneco also said it will add at least one new independent director to its board. “The addition of Lazard to our existing advisor team will add a fresh perspective in our assessment of strategic alternatives,” said Chairman Gregg Sherrill. The stock has plunged 34.1% over the past three months through Friday, while the S&P 500 has gained 9.0%.

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