Free Post Earnings Research Report: Meritor's Sales Surged 29%; Adjusted EPS Soared 148%

Stock Monitor: Tower Intl. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 20, 2018 / Active-Investors.com has just released a free earnings report on Meritor, Inc. (MTOR). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MTOR. The Company reported its first quarter fiscal 2018 operating and financial results on January 31, 2018. The supplier of parts for commercial vehicles and heavy equipment surpassed top- and bottom-line expectations, and provided guidance for the full fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Tower International, Inc. (TOWR), which also belongs to the Consumer Goods sector as the Company Meritor. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Meritor most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the first quarter of the fiscal year 2018, Meritor posted sales of $903 million, up approximately 29% compared to $699 million in Q1 FY17, driven by higher truck production in all of the Company's markets, aided by new business wins and favorable foreign currency impacts. Meritor's revenue numbers exceeded analysts' estimates of $826.3 million.

During Q1 FY18, Meritor's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $99 million compared to $64 million in Q1 FY17. The Company's adjusted EBITDA margin was 11.0% for the reported quarter compared to 9.2% in the year earlier same quarter. The improvement in Meritor's adjusted EBITDA and adjusted EBITDA margin was driven primarily by a conversion on higher revenue and the favorable impact of changes to the Company's retiree medical benefits.

For Q1 FY18, Meritor's net loss from continuing operations attributable to common shareholders was $35 million, or $0.40 loss per diluted share, compared to a net income from continuing operations attributable to common shareholders of $15 million, or $0.17 per diluted share, in Q1 FY17. The Company's reported quarter results included a $77 million non-cash tax expense as a result of the enactment of the Tax Cuts and Jobs Act 2017 (TCJA).

Meritor's adjusted income from continuing operations attributable to common shareholders was $55 million, or $0.62 per diluted share, in Q1 FY18 compared to $22 million, or $0.25 per diluted share, in Q1 FY17. The Company's earnings smashed past Wall Street's estimates of $0.46 per share.

Segment Results

During Q1 FY18, Meritor's Commercial Truck & Industrial segment's sales were $738 million, up 39% compared to $539 million in Q1 FY17, primarily driven by higher production in all of the Company's markets, with North America experiencing the largest increase, and further aided by continued benefits from new business wins, as well as favorable foreign currency impacts.

For Q1 FY18, Meritor's Commercial Truck & Industrial segment's adjusted EBITDA soared 90% to $80 million compared to $42 million for Q1 FY17, with an adjusted EBITDA margin of 10.8% versus 7.8% in the year earlier comparable quarter. The increases in both segment adjusted EBITDA and segment adjusted EBITDA margin were attributed to conversion on higher revenue and the favorable impact of changes to the Company's retiree medical benefits.

During Q1 FY18, Meritor's Aftermarket & Trailer segment's sales grew 6% to $195 million compared to $184 million in Q1 FY17, primarily driven by higher volumes across the segment. The segment's adjusted EBITDA were $21 million for the reported quarter, down 5% on a y-o-y basis, while adjusted EBITDA margin decreased to 10.8% compared to 12.0% in the year earlier corresponding quarter. The decline in segment adjusted EBITDA and segment adjusted EBITDA margin was driven in part by incremental investments supporting revenue growth initiatives.

Cash Matters

Meritor's cash provided by operating activities was $33 million in Q1 FY18 compared to $14 million in Q1 FY17. The Company's free cash flow was $15 million for the reported quarter compared to $31 million in the prior year's same period. Meritor noted that higher earnings helped drive cash flow performance in Q1 FY18.

Outlook

For the full fiscal year 2018, Meritor is forecasting revenues to be in the range of $3.8 billion to $3.9 billion. The Company is estimating net income from continuing operations to be in the band of $120 million to $130 million, or $1.30 to $1.40 per diluted share, and adjusted earnings to be in the range of $2.50 to $2.70 per diluted share.

For FY18, Meritor is projecting operating cash flow to be in the band of $210 million to $225 million and free cash flow to be in the range of $110 million to $125 million.

Stock Performance Snapshot

February 16, 2018 - At Friday's closing bell, Meritor's stock fell 1.31%, ending the trading session at $25.68.

Volume traded for the day: 1.61 million shares, which was above the 3-month average volume of 1.48 million shares.

Stock performance in the last month - up 7.81%; previous three-month period - up 2.35%; past twelve-month period - up 62.22%; and year-to-date - up 9.46%

After last Friday's close, Meritor's market cap was at $2.32 billion.

Price to Earnings (P/E) ratio was at 8.35.

The stock is part of the Consumer Goods sector, categorized under the Auto Parts industry.

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