Why Meritor (MTOR) Stock is Slumping Today
NEW YORK (TheStreet) -- Shares of Meritor (MTOR) - Get Report are slipping by 3.58% to $7.55 on heavy trading volume late Wednesday afternoon, after the Troy, MI-based company reported weaker-than-expected revenue for the 2016 fiscal second quarter and cut its guidance for the year.
Before today's market open, the parts supplier for commercial vehicles and heavy equipment said revenue declined 5% to $821 million year-over-year. The results missed Wall Street's forecasts of $831.7 million.
Adjusted earnings of 41 cents per diluted share were in line with analysts' estimates.
"We are continuing to execute well despite volatility in certain end markets," CEO Jay Craig said in a statement.
Additionally, Meritor lowered its adjusted earnings per diluted share and revenue guidance for 2016.
The company now expects adjusted earnings per diluted share between $1.55 and $1.65 on revenue of about $3.28 billion compared to its previous outlook for earnings per share of $1.65 to $1.75 on revenue of $3.4 billion.
Analysts are looking for earnings of $1.60 per share on revenue of $3.33 billion.
About 1.22 million of the company's shares changed hands by late this afternoon vs. its average volume of 765,402 shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. Among the primary strengths of the company is its generally strong cash flow from operations.
At the same time, the team also finds weaknesses including poor profit margins, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MTOR
