We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of Meritor, Inc. gained roughly 1.9% in a day’s trading, following its second-quarter fiscal 2018 earnings release. The company recorded adjusted earnings of 75 cents per share in second-quarter fiscal 2018 (ended Mar 31, 2018) compared with 35 cents a year ago. The figure comfortably surpassed the Zacks Consensus Estimate of 65 cents.
Adjusted income from continuing operations was $68 million compared with $32 million in second-quarter fiscal 2017.
Revenues increased approximately 32% year over year to $1.07 billion. The top line also beat the Zacks Consensus Estimate of $921.7 million. This rise was primarily due to higher production across all markets, business wins and favorable foreign currency.
Meritor’s adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased to $122 million from $82 million a year ago. Adjusted EBITDA margin was 11.4% compared with 10.2% a year ago. Both adjusted EBITDA and EBITDA margin increased on a year-over-year basis, driven by high revenue increase and a positive impact of changes in the company's retiree medical benefits. These positives were partly offset by a $5-million decrease in earnings due to the selling of the company's interest in the Meritor WABCO joint venture and increased environmental reserves of $8 million correlated to a legacy site.
On Mar 12, 2018, Meritor’s reportable segments were changed to Commercial Truck & Trailer, and Aftermarket & Industrial.
Segment Results
Revenues from the Commercial Truck & Trailer segment increased to $854 million, up $236 million from the same period last year. This upside was primarily driven by higher production across all major markets and new business wins. Segment adjusted EBITDA jumped to $96 million, up $44 million from the year-ago quarter. EBITDA margin rose to 11.2% in comparison with 8.4% in the same period last year.
Revenues from the Aftermarket & Industrial segment were $256 million, up $30 million from the year-ago quarter. The gain was primarily due to higher volumes in the Industrial business. Segment adjusted EBITDA was $36 million, up $4 million from the same time frame a year ago. This rise in adjusted EBITDA was due to high material and freight costs and the favorable impact of changes in retiree medical benefits. EBITDA margin edged down to 14.1% in comparison with 14.2% in the preceding year
Financial Position
Meritor’s cash and cash equivalents totaled $100 million as of Mar 31, 2018, compared with $88 million as of Sep 30, 2017. Long-term debt slumped to $728 million as of Mar 31, 2018, from $750 million as of Sep 30, 2017.
At the end of second-quarter fiscal 2018, Meritor’s cash flow from operating activities was $39 million compared with the cash flow of $44 million, used for operating activities in the same period a year ago. Capital expenditures decreased to $17 million from the year-ago figure of $23 million.
Outlook
For fiscal 2018, Meritor expects revenues of $4-$4.1 billion compared with the previous expectation of $3.8-$3.9 billion. Adjusted earnings per share from continuing operations are anticipated to be $2.7-$2.85 per share compared with the past projection of $2.5-$2.7. Adjusted EBITDA margin is estimated at 11.2%.
Further, the company anticipates free cash flow for fiscal 2018 in the range of $120-$135 million, up from the previous guidance of $110-$125 million. Similarly, operating cash flow is likely to be $220-$235 million, up from the previous view of $210-$225 million.
Zacks Rank & Stocks to Consider
Meritor carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the auto space are Peugeot SA , BMW AG (BAMXF - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) . Peugeot and BMW carry a Zacks Rank #2 (Buy) while Allison Transmission sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Peugeot has expected long-term growth rate of 19.2%. Year to date, shares of the company have gained 16.9%.
BMW has expected long-term growth rate of 4.5%. Shares of the company have risen 7.1%, year to date.
Allison Transmission has expected long-term growth rate of 10%. Over a month, shares of the company have gained 1.4%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Meritor (MTOR) Q2 Earnings Beat Estimates, Guidance Upbeat
Shares of Meritor, Inc. gained roughly 1.9% in a day’s trading, following its second-quarter fiscal 2018 earnings release. The company recorded adjusted earnings of 75 cents per share in second-quarter fiscal 2018 (ended Mar 31, 2018) compared with 35 cents a year ago. The figure comfortably surpassed the Zacks Consensus Estimate of 65 cents.
Adjusted income from continuing operations was $68 million compared with $32 million in second-quarter fiscal 2017.
Revenues increased approximately 32% year over year to $1.07 billion. The top line also beat the Zacks Consensus Estimate of $921.7 million. This rise was primarily due to higher production across all markets, business wins and favorable foreign currency.
Meritor, Inc. Price, Consensus and EPS Surprise
Meritor, Inc. Price, Consensus and EPS Surprise | Meritor, Inc. Quote
Meritor’s adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased to $122 million from $82 million a year ago. Adjusted EBITDA margin was 11.4% compared with 10.2% a year ago. Both adjusted EBITDA and EBITDA margin increased on a year-over-year basis, driven by high revenue increase and a positive impact of changes in the company's retiree medical benefits. These positives were partly offset by a $5-million decrease in earnings due to the selling of the company's interest in the Meritor WABCO joint venture and increased environmental reserves of $8 million correlated to a legacy site.
On Mar 12, 2018, Meritor’s reportable segments were changed to Commercial Truck & Trailer, and Aftermarket & Industrial.
Segment Results
Revenues from the Commercial Truck & Trailer segment increased to $854 million, up $236 million from the same period last year. This upside was primarily driven by higher production across all major markets and new business wins. Segment adjusted EBITDA jumped to $96 million, up $44 million from the year-ago quarter. EBITDA margin rose to 11.2% in comparison with 8.4% in the same period last year.
Revenues from the Aftermarket & Industrial segment were $256 million, up $30 million from the year-ago quarter. The gain was primarily due to higher volumes in the Industrial business. Segment adjusted EBITDA was $36 million, up $4 million from the same time frame a year ago. This rise in adjusted EBITDA was due to high material and freight costs and the favorable impact of changes in retiree medical benefits. EBITDA margin edged down to 14.1% in comparison with 14.2% in the preceding year
Financial Position
Meritor’s cash and cash equivalents totaled $100 million as of Mar 31, 2018, compared with $88 million as of Sep 30, 2017. Long-term debt slumped to $728 million as of Mar 31, 2018, from $750 million as of Sep 30, 2017.
At the end of second-quarter fiscal 2018, Meritor’s cash flow from operating activities was $39 million compared with the cash flow of $44 million, used for operating activities in the same period a year ago. Capital expenditures decreased to $17 million from the year-ago figure of $23 million.
Outlook
For fiscal 2018, Meritor expects revenues of $4-$4.1 billion compared with the previous expectation of $3.8-$3.9 billion. Adjusted earnings per share from continuing operations are anticipated to be $2.7-$2.85 per share compared with the past projection of $2.5-$2.7. Adjusted EBITDA margin is estimated at 11.2%.
Further, the company anticipates free cash flow for fiscal 2018 in the range of $120-$135 million, up from the previous guidance of $110-$125 million. Similarly, operating cash flow is likely to be $220-$235 million, up from the previous view of $210-$225 million.
Zacks Rank & Stocks to Consider
Meritor carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the auto space are Peugeot SA , BMW AG (BAMXF - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) . Peugeot and BMW carry a Zacks Rank #2 (Buy) while Allison Transmission sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Peugeot has expected long-term growth rate of 19.2%. Year to date, shares of the company have gained 16.9%.
BMW has expected long-term growth rate of 4.5%. Shares of the company have risen 7.1%, year to date.
Allison Transmission has expected long-term growth rate of 10%. Over a month, shares of the company have gained 1.4%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>