Meritor (MTOR) Misses Q3 EPS by 1c, Revenues Beat; Offers 4Q Revenue Guidance Above Consensus

Meritor (NYSE: MTOR) reported Q3 EPS of ($0.47), $0.01 worse than the analyst estimate of ($0.46). Revenue for the quarter came in at $514 million versus the consensus estimate of $455.64 million.

Third-Quarter Highlights

• Sales of $514 million
• Net loss attributable to Meritor and net loss from continuing operations attributable to Meritor were $36 million
• Diluted loss per share from continuing operations of $0.50
• Adjusted loss from continuing operations attributable to the company of $34 million, or $0.47 loss per adjusted diluted share
• Adjusted EBITDA of $7 million and adjusted EBITDA margin of 1.4 percent
• Operating cash flow was negative $102 million
• Total liquidity of $970 million as of June 30, 2020

GUIDANCE:

Meritor sees Q4 2020 EPS of ($0.10), versus the consensus of ($0.10). Meritor sees Q4 2020 revenue of $700 million, versus the consensus of $609.8 million.

• Sales of approximately $700 million
• Net loss attributable to the company and net loss from continuing operations attributable to the company to be approximately $10 million
• Diluted loss per share from continuing operations to be approximately $0.15
• Adjusted EBITDA margin of approximately 6 percent
• Adjusted diluted EPS from continuing operations of approximately negative $0.10
• Operating cash flow to be approximately $65 million
• Free cash flow of approximately $25 million

"We took aggressive actions to reduce our cost structure in the short-term to preserve liquidity and stabilize cash flow," said Jay Craig, president and CEO of Meritor. "At the same time, we are making the appropriate investments to ensure the company is in a strong product position for the future."

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

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