Wed, Aug. 3, 12:00 PM
Wed, Aug. 3, 10:06 AM
- Meritor (MTOR +11%) is higher after topping estimates on both lines of its FQ3 report.
- The company reports its adjusted EBITDA margin rate improved to 11.4% from 9.6% a year ago.
- The view on full-year revenue is lowered to $3.225B vs. $3.275B prior and $3.25B consensus.
- New authorizations for Meritor include the ability to buy back $150M in debt and $100M in shares.
- Previously: Meritor beats by $0.14, beats on revenue (Aug. 3)
Thu, Jul. 21, 11:57 AM
- Auto parts stocks are rallying after strong reports from Dana Holding (DAN +9.7%), Johnson Controls (JCI +3.4%), and General Motors.
- GM showed strong results in North America and issued reassuring guidance, while both Dana and Johnson beat on the top line.
- Sector movers: BorgWarner (BWA +2%), Accuride (ACW +3.2%), Fenix Parts (FENX +4.8%), Tenneco (TEN +3.6%), Westport Fuel Systems (WPRT +4%), Cooper-Standard Holdings (CPS +2.8%), and Meritor (MTOR +2.2%).
- Previously: GM +4% as profit surges, full-year guidance raised (July 21)
- Previously: More on Dana Holding's Q2 (July 21)
Tue, Jun. 28, 2:42 PM
- WABCO (WBC -2%) is downgraded to Neutral from Overweight with a $94 price target, cut from $124, at Piper Jaffray, which says the company has the highest European exposureamong truck suppliers at 55% of 2015 revenue.
- Investors likely will shun WBC as investors looking to minimize their exposure to Europe over the coming months, the firm says.
- Piper Jaffray also downgrades Navistar (NAV -0.3%) to Neutral from Overweight with an $11.50 price target, cut from $14; even though Brexit-related risks are low for NAV, investors likely will look for safer options given declining orders in the U.S. truck market.
- Finally, the firm cuts Meritor (MTOR -9.6%) to Underweight from Neutral with a $6 target, citing the company's 20% of revenues that come from Europe and its 75% debt-to-capital ratio.
- WBC also is downgraded to Neutral from Buy with a $95 price target at Goldman Sachs, which also cites the company's European truck market exposure in cutting 2017-18 earnings estimates.
Tue, Jun. 28, 12:00 PM
Mon, Jun. 27, 12:01 PM
Wed, May 4, 9:49 AM
- Meritor (MTOR -4.2%) reports revenue declined 5% in FQ2 due to lower truck production volumes in North and South America and the effect of foreign exchange translation, particularly in Brazil.
- Commercial Truck & Industrial sales fell 7.3% to $631M.
- Aftermarket & Trailer sales increased 2.8% to $218M.
- Gross margin rate improved 140 bps to 14.7%.
- Segment EBITDA: Commercial Truck & Industrial: $56M (-1.8%); Aftermarket & Trailer: $28M (-6.7%).
- Adjusted EBITDA margin dropped 20 bps to 9.9%.
- FY2016 Guidance: Revenue: ~$3.725B; Adjusted EBITDA margin: ~10%; Adjusted EPS from continuing operations: $1.55 to $1.65; Free cash flow: ~$90M; Capital expenditure: ~$90M; Interest expnese: $80M to $90M; Cash interest: $65M to $75M; Tax rate: ~15%.
Fri, Apr. 1, 11:14 AM
- Auto parts stock are lower after March U.S. auto sales from the Detroit Three fall short of the estimates of research firms.
- Leading decliners include Metaldyne (MPG -6.7%), Dana Holding (DAN -4.9%), American Axle & Manufacturing (AXL -3.4%), Tenneco (TEN -3.6%), Lear Corp. (LEA -3.1%), Meritor (MTOR -2.4%), and Gentherm (THRM -2.1%).
- Now read The U.S. Auto Market: How Many Brands, How Many Models?
Mon, Feb. 22, 10:19 AM
- Shipping stocks are on the move after the large jump in crude oil prices eases some anxiety over demand.
- Notable gainers include Diana Shipping (DSX +12.1%), Navios Maritime Partners (NMM +6.5%), Frontline (FRO +6.6%), and Scorpo Bulkers (SALT +5.9%).
- The trucking sector is also ahead of broad market averages off the oil news. ArcBest (ARCB +4.4%), Swift Transportation (SWFT +1.6%), Celadon Group (CGI +2%), and Knight Transportation (KNX +2.6%) (also upgraded) are on the rise.
- Railroad industry players CSX (CSX +3.8%) and Genesee & Wyoming (GWR +3.7%) are up sharply.
- On the vehicle manufacturing/supplier side, solid gainers include Meritor (MTOR +6.7%), Dana Holding (DAN +2.7%), Westport Innovations (WPRT +3.9%), Oshkosh (OSK +3.8%), Navistar (NAV +5.4%), and PACCAR (PCAR +2.3%).
- The Detroit Three are all in rally mode as well. Ford (NYSE:F) and GM (NYSE:GM) are up 2%, while Fiat Chrysler Automobiles (NYSE:FCAU) is 3.3% higher.
- Previously: Oil prices rebound, WTI heads back above $30 (Feb. 22 2016)
Wed, Feb. 3, 8:38 AM
- Meritor (NYSE:MTOR) reports revenue fell 8% in FQ1 driven by the effect of foreign exchange translation in Europe and Brazil and weak economic conditions in South America.
- Commercial Truck & Industrial sales declined 10% to $633M.
- Aftermarket & Trailer sales slipped 2.4% to $203M.
- Gross margin rate dropped 20 bps to 12.9%.
- Segment EBITDA: Commercial Truck & Industrial: $52M (-7.1%); Aftermarket & Trailer: $20M (-20%).
- Adjusted EBITDA margin expanded 40 bps to 9.4%.
- FY2016 Guidance: Revenue: ~$3.4B to $3.55B; Adjusted EBITDA margin: ~10%; Adjusted EPS from continuing operations: $1.656 to $1.75; Free cash flow: ~$110M; Capital expenditure: ~$90M; Interest expnese: $80M to $90M; Cash interest: $65M to $75M; Tax rate: ~15%.
Wed, Jan. 20, 3:40 PM
- Auto suppliers Federal-Mogul Holdings (FDML +11.1%), Motorcar Parts of America (MPAA +6.2%), Gentherm (THRM +5%), Meritor (MTOR +4.3%), and Stonebridge (SRI +2.8%) are all showing outsized gains on the day, despite global stock market declines. The sector has been off to a volatile start this year.
- Tire stocks Goodyear Tire & Rubber (GT +2.2%) and Cooper Tire & Rubber (CTB +0.7%) are also in solid shape today.
- Though some forecasts call for automobile sales growth to slow in China and the U.S. this year, strong demand from Europe is making up for some of the slack.
- Previously: European automobile market stays on promising track (Jan. 18 2016)
Tue, Jan. 5, 11:31 AM
- Many auto parts stocks are trailing off after key manufacturers (Ford, GM, Toyota, Fit Chrysler) miss forecasts with their December U.S. sales reports. The sector bounced last month when the rosy predictions first started piling in.
- Weakness in China this week may be impacting sentiment on certain auto parts names as well.
- Decliners include Modine Manufacturing (MOD -4.9%), Federal-Mogul (FDML -5.1%), Stoneridge (SRI -3.8%), American Axle & Manufacturing (AXL -3.1%), Delphi Automotive (DLPH -2.3%), Autoliv (ALV -2.3%), Meritor (MTOR -3.4%), Gentherm (THRM -2.3%), BorgWarner (BWA -1.8%), and Lear (LEA -2%).
Dec. 23, 2015, 1:35 PM
- Auto parts stocks are solid outperformers on the day. The rally could be a reaction to estimates from TrueCar and Kelley Blue Book that showed U.S. auto sales popped in December. Both research firms predict a 13% Y/Y increase in sales for the month.
- Notable advancers include Meritor (MTOR +4.5%), Dana Holding (DAN +3.9%), BorgWarner (BWA +3.2%), Stoneridge (SRI +2.7%), Tenneco (TEN +2.3%), Federal-Mogul (FDML +2.8%), Delphi Automotive (DLPH +1.9%), Allison Transmission (ALSN +2.1%), and Johnson Controls (JCI +2.1%).
Dec. 9, 2015, 9:53 AM
- The NHTSA proposes adding new safety categories to its ratings systems with an aim to accelerate technology innovation and integration.
- Safety features such as forward collision warnings, blind-spot alerts, lane departure information, and rear cameras would be part of the ratings system under the changes.
- The push from the regulator could help some auto suppliers such as Delphi Automotive (DLPH +1.4%) and Mobileye (MBLY +2.5%), notes the WSJ.
- Autoliv (ALV +2.1%), WABCO Holdings (WBC +1.5%), Borg Warner (BWA +1.3%), and Meritor (MTOR +1.3%) are all ahead of market averages in early action today, perhaps due to the NHTSA strategy reveal.
- Related auto stocks GM, F, TM, HMC, OTCPK:NSANY, OTCQX:VLKAY, OTCPK:DDAIF, OTCPK:BAMXY, TSLA, TTM, OTC:HYMLF.
Oct. 15, 2015, 9:14 AM
- Terex (NYSE:TEX) -3.6% premarket after Manitowoc (NYSE:MTW) pre-announced lower than expected Q3 revenue following yesterday's close, pointing specifically to weakness in its cranes segment.
- MTW said its cranes segment continues to be hurt by a deteriorating demand environment, particularly in the Middle East and Asia, and lower than expected tower and crawler crane shipments exacerbated the Q3 shortfall in revenues.
- Other companies in the commercial equipment sector include Accuride (NYSE:ACW), Meritor (NYSE:MTOR), Deere (NYSE:DE) and Caterpillar (NYSE:CAT).
- MTW -14.4% premarket.
Sep. 22, 2015, 10:16 AM
- The automobile parts sector is down again to follow a rout of European automaker stocks earlier in the day led by the dismantling of shares of scandal-ridden Volkswagen.
- Losing business from Volkswagen is one concern, but a broader issue could be tighter emissions testing and compliance protocols in the industry.
- Decliners include Tenneco (TEN -7.5%), Delphi Automotive (DLPH -4.3%), Allison Transmission Holdings (ALSN -4%), Federal-Mogul Holdings (FDML -4.4%), Lear (LEA -3.3%), Meritor (MTOR -3.8%), Dana Holding (DAN -3.7%), Autoliv (ALV -3.4%), Modine Manufacturing (MOD -2.8%), Standard Motor Products (SMP -2.3%), Stoneridge (SRI -3.6%), American Axle & Manufacturing (AXL -2.5%), and Johnson Controls (JCI -2.3%).
- Previously: Volkswagen -35% in two-day drubbing after cheating scandal (Sep. 22 2015)
Meritor, Inc. engages in the design, production, and trade of modules and components to original equipment manufacturers. Its products include axle, brake, and suspension solutions. The company was founded on July 7, 2000 and is headquartered in Troy, MI.
Sector: Consumer Goods
Industry: Auto Parts
Country: United States