Meritor, Inc. MTOR posted adjusted earnings per share of 80 cents in fourth-quarter fiscal 2021, which beat the Zacks Consensus Estimate of 55 cents and jumped from the year-ago figure of 15 cents. Adjusted income from continuing operations was $57 million in the reported quarter compared with $8 million recorded in the prior-year quarter.Sales grew 25% year over year to $945 million in the fiscal fourth quarter. This year-over-year increase was primarily driven by higher global truck production in all markets. The top line, however, missed the Zacks Consensus Estimate of $1,012.4 million.Adjusted EBITDA went up to $91 million from the year-earlier quarter’s $60 million. Adjusted EBITDA margin was 9.6% compared with the prior year’s 7.9%. This upside stemmed from higher sales volumes, partially offset by higher freight and steel costs.Meritor, Inc. Price, Consensus and EPS Surprise Meritor, Inc. price-consensus-eps-surprise-chart | Meritor, Inc. QuoteSegment ResultsIn the September quarter, revenues from the Commercial Truck & Trailer segment amounted to $740 million, growing 32% year over year on higher global truck production in all markets. The figure, however, missed the Zacks Consensus Estimate of $791 million. The segment reported an adjusted EBITDA of $54 million, rising from $24 million witnessed in the year-ago quarter. The figure missed the consensus mark of $55 million. The EBITDA margin came in at 7.3% during the quarter, increasing from 4.3% recorded in the prior-year quarter.Quarterly revenues in the Aftermarket & Industrial segment totaled $250 million, up 11% from the year-ago level on higher volumes across the segment. The revenue figure topped the Zacks Consensus Estimate of $249 million. The segment’s adjusted EBITDA was $34 million, flat year over year. The figure, however, missed the consensus mark of $39.83 million. Also, EBITDA margin edged down 13.6% year over year compared with 15% in the prior-year quarter, primarily on elevated freight costs, which more than muted conversion on higher sales.Financial PositionIn the reported quarter, Meritor’s cash and cash equivalents summed $101 million as of Sep 30, 2021, falling steeply from $315 million as of Sep 30, 2020. Long-term debt was $1,008 million at the end of the fiscal fourth quarter, down from $1,188 million as of Sep 30, 2020.During the fiscal fourth quarter, Meritor’s cash provided from operating activities was $51 million against the cash used for operating activities of $77 million witnessed in the year-ago quarter.Free cash flow in the reported quarter was $8 million, down from $37 million recorded in the same period last year. In the quarter ended Sep 30, 2021, capital expenditure was $43 million compared with the $40 million incurred in the year-ago quarter.Fiscal 2022 OutlookFor fiscal 2022, Meritor projects sales to be in the range of $4.1-$4.3 billion, up from the previous forecast of $3.9 billion for full-year 2021. The company projects adjusted earnings per share to be in the range of $3.25-$3.75, up from the earlier guidance of $2.45 for fiscal 2021. Cash flow from operations and free cash flow are anticipated to be in the range of $275-$320 million and in the range of $175-$200 million compared with the earlier projections of $210 million and $115 million, respectively.Zacks Rank & Key PicksMeritor currently carries a Zacks Rank #4 (Sell).A few better-ranked players in the same space are Goodyear GT, flaunting a Zacks Rank #1 (Strong Buy), and Genuine Parts GPC and Dorman Products DORM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Goodyear has an expected earnings growth rate of 197% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised 77% upward over the past 60 days.Goodyear beat the Zacks Consensus Estimate for earnings in all the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 228.5%, on average. Its shares have also gained around 104.3% over a year.Genuine Parts has an expected earnings growth rate of 27.3% for the current year. The Zacks Consensus Estimate for the current year has been revised around 5% upward over phe last 60 days.Genuine Parts beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters. The company delivered a trailing four-quarter earnings surprise of roughly 16%, on average. Its shares have also rallied around 39.3% over a year.Dorman has an expected earnings growth rate of 36% for the current year. The Zacks Consensus Estimate for the current year has been revised 2% upward over the past 60 days.Dorman beat the Zacks Consensus Estimate for earnings in all of the four trailing quarters. The company pulled off a trailing four-quarter earnings surprise of roughly 10.41%, on average. Its shares have also rallied around 26.1% over a year. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genuine Parts Company (GPC): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report Meritor, Inc. (MTOR): Free Stock Analysis Report Dorman Products, Inc. (DORM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research