Meritor (MTOR) Stock Falls on Revenue Miss

Meritor (MTOR) stock is down after the company's 2015 fourth quarter revenue results missed analysts' expectations.
By Amanda Albright ,

NEW YORK (TheStreet) -- Meritor (MTOR) - Get Report stock is down by 4.18% to $10.31 on heavy trading volume in early afternoon trading on Wednesday, after the company's 2015 fourth quarter revenue results missed analysts' expectations. 

The Troy, MI-based company, which creates movement control systems for buses and trucks, reported adjusted earnings of 39 cents per share. Sales decreased to $853 million, down from $933 million for the year-ago period. 

Analysts surveyed by Thomson Reuters were expecting the company to report earnings of 30 cents per share on revenue of $864.85 million.

Meritor set its 2016 earnings outlook at $1.60 per share to $1.70 per share.

"We are continuing to demonstrate strong performance against our transformational M2016 objectives as shown by our results this past year," CEO Jay Craig said in a statement. "By doing so, we believe the company will be better positioned to capitalize on meaningful growth opportunities as we look beyond 2016."

So far today, 3.05 million shares of Meritor have traded, versus its 30-day average of 1.35 million shares.

Separately, TheStreet Ratings team rates MERITOR INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate MERITOR INC (MTOR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and poor profit margins.

You can view the full analysis from the report here: MTOR

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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