Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of automotive equipment supplier Meritor (MTOR) jumped 23% today after the company released earnings.
So what: Sales dropped 22% to $908 million and the company reported a net loss of $4 million, or $0.04 per share. Revenue fell short of estimates but investors are clinging to adjusted earnings per share of $0.06, which came in a penny ahead of expectations.
Now what: Investors are betting on a big turnaround for Meritor and management is hoping for adjusted earnings of $0.25-$0.35 per share this year. I just don't like the trends we're seeing right now from a revenue perspective. I'm going to leave this move alone today and wait for more sound fundamentals before looking at the stock again.
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