Meritor (MTOR) Tops Q2 EPS by 8c, Revenues Beat; Offers FY21 EPS/Revenues Outlook

Meritor (NYSE: MTOR) reported Q2 EPS of $0.68, $0.08 better than the analyst estimate of $0.60. Revenue for the quarter came in at $983 million versus the consensus estimate of $937.42 million.

Second-Quarter Highlights

• Sales of $983 million
• Net income attributable to Meritor and net income from continuing operations attributable to Meritor of $63 million
• Diluted earnings per share from continuing operations of $0.86
• Adjusted income from continuing operations attributable to the company of $50 million, or $0.68 per adjusted diluted share
• Adjusted EBITDA of $111 million and adjusted EBITDA margin of 11.3 percent
• Operating cash flow of $63 million
• Free cash flow of $47 million

GUIDANCE:

Meritor sees FY2021 EPS of $2.15-$2.30, versus the consensus of $2.28. Meritor sees FY2021 revenue of $3.65-3.8 billion, versus the consensus of $3.72 billion.

Outlook for Fiscal Year 2021

• Revenue to be in the range of $3.65 billion to $3.8 billion
• Net income attributable to Meritor and net income from continuing operations attributable to Meritor to be in the range of $145 million to $155 million
• Diluted earnings per share from continuing operations to be in the range of $2.00 to $2.15
• Adjusted diluted earnings per share from continuing operations to be in the range of $2.15 to $2.30
• Adjusted EBITDA margin to be in the range of 10.6 percent to 10.8 percent
• Operating cash flow to be in the range of $205 million to $220 million
• Free cash flow to be in the range of $110 million to $125 million

"We are maintaining our full-year guidance for fiscal year 2021 despite anticipated headwinds from higher steel costs and increased electrification expense as we continue to win new business," said Chris Villavarayan, president and CEO of Meritor. "Our path to successfully complete M2022 remains on-track."

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

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