Benzinga | Aug 4, 2021 02:43PM EDT

Meritor Q3 Earnings Tops Estimates; Raises FY21 Guidance

* Meritor Inc (NYSE:MTOR) reported third-quarter FY21 sales growth of 97.7% year-on-year, to $1.02 billion, beating the analyst consensus of $923.87 million.

* Commercial Truck sales gained 138% Y/Y, and Aftermarket & Industrial sales grew 27%.

* Gross profit jumped 371.4% Y/Y to $132 million.

* The operating margin was 5.8%, and operating income for the quarter was $59 million.

* Cash provided by operating activities amounted to $39 million, with $18 million free cash flow.

* The company held $138 million in cash and equivalents as of June 30, 2021.

* Adjusted EBITDA of $107 million rose 1428% Y/Y, and the adjusted EBITDA margin was 10.5%.

* Adjusted EPS from continuing operations of $0.62 beat the analyst consensus of $0.50.

* "As market adoption grows for electric commercial vehicles, we remain focused on expanding growth opportunities as demonstrated by the new relationships we announced with Hyliion, Hino, and SEA Electric," said CEO Chris Villavarayan.

* Outlook: Meritor raised FY21 revenue guidance to ~$3.9 billion (prior $3.650 billion - $3.8 billion), versus the consensus of $3.74 billion.

* The company sees FY21 adjusted EPS from continuing operations of ~$2.45 (previous $2.15 - $2.30), versus the consensus of $2.25.

* Price action: MTOR shares are trading higher by 0.42% at $24.08 on the last check Wednesday.