Analysts were expecting ArvinMeritor Inc. (ARM) [Chart - News - Analysis] to report earnings of $-0.31 for last quarter, but ARM beat expectations with actual earnings of $-0.28---3 cents above the consensus estimate.

If you compare last quarter's earnings to the $0.38 the company made per share during the same quarter a year ago, you can see that ARM’s earnings are down this year.

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Also, if you compare ARM's 12.00% projected earnings-per-share (EPS) growth rate for the next five years with the projected EPS growth rate of 12.77% for the Auto Parts industry as a whole during that same time frame, you can see that analysts expect ARM to underperform the industry in the future---which is a bad sign for the stock.

Drilling down a little deeper into the Auto Parts industry, you can see how analysts believe ARM will stack up against some of the other stocks in the industry, like Federal-Mogul Corp. (FDML) [Chart - News - Analysis] and Magna International, Inc. (MGA) [Chart - News - Analysis], in the future. Analysts believe FDML's earnings are going to grow at a rate of 0.00% while MGA's earnings are going to grow at a rate of 9.00%.

Earnings season can be a volatile time in the stock market. Check out these videos and articles to be better prepared to take advantage of the large price moves that tend to accompany earnings announcements.

- Earnings Season is Here - Find Out How to Trade It

- Using Options to Trade Earnings

- Understanding Stock Analyst Research and Recommendations

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