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.
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