Meritor Earnings: Here’s Why the Stock is Rising Now

Meritor, Inc. (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 10.9%.

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Meritor, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 81.82% to $0.06 in the quarter versus EPS of $0.33 in the year-earlier quarter.

Revenue: Decreased 21.72% to $908 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Meritor, Inc. reported adjusted EPS income of $0.06 per share. By that measure, the company beat the mean analyst estimate of $0.05. It missed the average revenue estimate of $914.04 million.

Quoting Management: “Our improved performance this quarter was in line with our expectations,” said Chairman, CEO and President Chip McClure. “We drove higher EBITDA margins quarter-over-quarter as a result of net material performance, pricing actions and lower structural costs.”

Key Stats (on next page)…

Revenue increased 1.91% from $891 million in the previous quarter. EPS increased to $0.06 in the quarter versus EPS of $-0.11 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.15 to a profit $0.16. For the current year, the average estimate has moved down from a profit of $0.45 to a profit of $0.28 over the last ninety days.

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