Meritor Earnings: Here’s Why Investors are Happy Now

Meritor (NYSE:MTOR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 7.4%.

Meritor Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 10.53% to $0.34 in the quarter versus EPS of $0.38 in the year-earlier quarter.

Revenue: Decreased 10.78% to $993 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Meritor reported adjusted EPS income of $0.34 per share. By that measure, the company beat the mean analyst estimate of $0.19. It missed the average revenue estimate of $1.02 billion.

Quoting Management: “Our performance this quarter was in line with our expectations,” said Executive Chairman, Interim CEO and President Ike Evans. “We have driven higher EBITDA margins over the last year primarily through improved net material performance, lower structural costs and pricing initiatives.”

Key Stats (on next page)…

EPS increased 466.67% from $0.06 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.18 to a profit $0.17. For the current year, the average estimate has moved up from a profit of $0.28 to a profit of $0.32 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]