Meritor Shares Slide After Q4 Sales Miss, Modest FY22 Outlook

Meritor Inc MTOR reported fourth-quarter FY21 sales growth of 24.7% year-on-year, to $945 million, missing the analyst consensus of $975.83 million.
Commercial Truck sales increased 32% Y/Y, and Aftermarket & Industrial sales rose 11%.
The gross profit rose 86.4% Y/Y to $110 million with a profit margin of 11.6%.
The operating margin was 4.1%, and operating income for the quarter jumped 254% to $39 million.
Adjusted EBITDA for the quarter was $91 million with a margin of 9.6%.
Adjusted EPS was $0.80 versus $0.11 last year.
The company held $101 million in cash and equivalents as of September 30, 2021. Cash flow provided by operating activities for the quarter totaled $51 million with a free cash flow of $8 million.
Outlook: Meritor sees FY22 sales of $4.1 billion - $4.3 billion, versus the consensus of $4.32 billion.
The company expects FY22 adjusted EPS of $3.25 - $3.75, versus the consensus of $3.89.
Price Action: MTOR shares are trading lower by 2.25% at $26.99 on the last check Wednesday.