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 commercial vehicle supplier Meritor Inc. (NYSE:MTOR) jumped 15% today after reporting earnings.

So what: Fiscal-second-quarter revenue was up 6% to $962 million, easily topping Wall Street's $922 million estimate. On an adjusted basis, earnings were $0.22 per share, which came in $0.13 ahead of estimates.  

Now what: The commercial trucking market helped drive results, and that gave management enough confidence to raise earnings guidance by $0.20 to between $0.50 and $0.60 per share. That still leaves the company with a 23 P/E ratio, which is too expensive for me given the slow growth rate. I'd like to see further stable profits before jumping in, but investors should definitely see positive signs in Meritor's results.

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Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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