What happened Shares of Tennant (NYSE: TNC) traded up more than 12% on Wednesday afternoon after the manufacturer of industrial-grade floor cleaning-equipment reported second-quarter earnings that easily exceeded expectations. The report continues a strong run for Tennant shares so far this year, with the stock now up more than 45% year to date. So what Before markets opened on Wednesday, Tennant reported non-GAAP earnings of $1.13 per share and GAAP earnings of $0.81 per share. This surpassed the $0.75-per-share consensus estimate despite revenue that, at $299.7 million, missed expectations by about $1.3 million. The non-GAAP results exclude charges related to the exit of two product lines. Image source: Getty Images. The company's revenue was up 2.6% year over year, and non-GAAP net income was up close to 37%. Sales were up 12.7% in the Asia-Pacific region and up 6% in the Americas, more than offsetting a 7.4% decline, including currency adjustments, in Europe. CEO Chris Killingstad said in a statement that the results exceeded internal expectations, fueled by the company's efforts to grow profitability. "Tennant Company's transition from a period of strategic expansion to a heightened focus on profitable growth is supported by three strategic pillars: winning where we have the strongest value proposition; reducing complexity and building scalable processes; and building on our position as an innovation leader," Killingstad said. Adjusted gross margin was 41.4% in the quarter, a 130-basis-point improvement year over year, thanks to better pricing, favorable geographic and product mix, and operational efficiencies. Now what Going into 2019, Killingstad was worried that headwinds including tariffs, rising freight costs, and higher commodity prices would pressure results, but it's been so far so good for Tennant. The company is forecasting modest full-year sales growth of 3% to 4% and adjusted EPS of $2.65 to $2.85 per diluted share compared to $1.82 per share in 2018 and a loss of $0.35 per share in 2017. It seems unlikely, given those headwinds, that the stock's second-half performance will match the year-to-date gains, but this is a well-run company that is managing its way through what should be a tough environment. 10 stocks we like better than Tennant CompanyWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tennant Company wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 1, 2019 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Tennant Company. The Motley Fool has a disclosure policy.Source