Meritor (MTOR) Tops Q4 EPS by 8c, Revenues Beat; Offers FY21 EPS/Revenue Guidance Above Consensus

Meritor (NYSE: MTOR) reported Q4 EPS of $0.11, $0.08 better than the analyst estimate of $0.03. Revenue for the quarter came in at $758 million versus the consensus estimate of $702.1 million.

Fourth-Quarter Highlights

• Sales were $758 million
• Net income attributable to Meritor and net income from continuing operations attributable to Meritor were each $1 million
• Diluted earnings per share from continuing operations was $0.01
• Adjusted income from continuing operations attributable to Meritor was $11 million, or $0.15 of adjusted diluted earnings per share
• Adjusted EBITDA was $60 million
• Adjusted EBITDA margin was 7.9 percent

GUIDANCE:

Meritor sees FY2021 EPS of $1.10-$1.75, versus the consensus of $0.97. Meritor sees FY2021 revenue of $3.1-3.35 billion, versus the consensus of $3 billion.

The company is providing the following guidance for fiscal year 2021:

• Revenue to be in the range of $3.1 billion to $3.35 billion
• Net income attributable to Meritor and net income from continuing operations attributable to Meritor to be in the range of $45 million to $75 million
• Diluted earnings per share from continuing operations to be in the range of $0.60 to $1.05
• Adjusted diluted earnings per share from continuing operations to be in the range of $1.10 to $1.75
• Adjusted EBITDA margin to be in the range of 9.2 percent to 10.2 percent
• Operating cash flow to be in the range of $145 million to $185 million
• Free cash flow to be in the range of $60 million to $100 million

"While fiscal year 2020 brought unforeseen headwinds, Meritor implemented cost containment actions early, bolstered our liquidity and maintained a strong balance sheet, which helped offset the financial impact of the pandemic and enabled us to continue making long-term investments," said Jay Craig, president and CEO of Meritor. "We remain confident that our M2022 plan remains on track."

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

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