The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Meritor missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share dropped.
Gross margins grew, operating margins dropped, net margins contracted.
Meritor reported revenue of $891.0 million. The nine analysts polled by S&P Capital IQ expected to see a top line of $939.3 million on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $1.16 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.11. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. GAAP EPS were -$0.22 for Q1 compared to -$0.23 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.3%, 20 basis points better than the prior-year quarter. Operating margin was 2.2%, 130 basis points worse than the prior-year quarter. Net margin was -2.4%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $4.02 billion. The average EPS estimate is $0.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 145 members out of 193 rating the stock outperform, and 48 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Meritor a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Meritor is hold, with an average price target of $6.22.
Is Meritor the right retailer for your portfolio? Learn how to maximize your investment income and ""Secure Your Future With 9 Rock-Solid Dividend Stocks,"" including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Meritor to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.