Meritor (MTOR) Tops Q1 EPS by 18c, Beats on Revenues; Offers FY18 EPS/Revenue Outlook Above Consensus

Meritor (NYSE: MTOR) reported Q1 EPS of $0.62, $0.18 better than the analyst estimate of $0.44. Revenue for the quarter came in at $903 million versus the consensus estimate of $840.02 million.

Outlook for Fiscal Year 2018

The company is revising its guidance for fiscal year 2018 as follows:

• Revenue to be in the range of $3.8 billion to $3.9 billion.
• Net income attributable to the company and net income from continuing operations attributable to the company to be in the range of $120 million to $130 million (diluted earnings per share of $1.30 to $1.40).
• Adjusted EBITDA margin to be in the range of 11.0 percent to 11.2 percent.
• Adjusted diluted earnings per share from continuing operations to be in the range of $2.50 to $2.70.
• Operating cash flow to be in the range of $210 million to $225 million.
• Free cash flow to be in the range of $110 million to $125 million.

"Overall, this was an excellent quarter for us. We continue to drive strong operational execution, deliver new business wins and convert on stronger global markets," said Jay Craig, CEO and president. "We are raising our financial guidance for the year to reflect the continued strength we expect in our results for fiscal 2018."

GUIDANCE:

Meritor sees FY2018 EPS of $2.50-$2.70, versus the consensus of $2.43. Meritor sees FY2018 revenue of $3.8-3.9 million, versus the consensus of $3.78 million.

First-Quarter Highlights

• Sales of $903 million.
• Net loss attributable to the company of $36 million and net loss from continuing operations attributable to the company of $35 million.
• Diluted loss per share from continuing operations of $0.40.
• Adjusted income from continuing operations attributable to the company of $55 million, or $0.62 per adjusted diluted share.
• Adjusted EBITDA of $99 million and adjusted EBITDA margin of 11.0 percent.

For earnings history and earnings-related data on Meritor (MTOR) click here.

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