Robotics could soften COVID impact

Article Excerpt

TENNANT CO. $70 is still a hold. The company (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 18.3 million; Market cap: $1.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.3%; TSINetwork Rating: Average; www.tennantco.com) makes industrial floor and street-cleaning equipment, including scrubbers, sweepers and polishers. Businesses are spending less on Tennant’s equipment as a result of COVID-19 shutdowns. In the quarter ended March 31, 2020, its sales fell 4.0%, to $252.1 million from $262.5 million a year earlier. Earnings before unusual items dropped 20.8%, to $0.57 from $0.72. The company recently launched new robotic floor scrubbers. That should appeal to retailers looking to cut their labour costs as they spend more time cleaning their stores. However, Tennant’s shares will likely remain depressed until the pandemic eases and the economy improves. Tennant is a hold. hold…

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