Dana Shares Plummet On Q3 Earnings Miss, FY21 Outlook Cut

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  • Dana Inc DAN reported third-quarter FY21 sales growth of 10.5% year-on-year, to $2.20 billion, beating the analyst consensus of $2.09 billion.
  • Light vehicle revenue rose 0.5% Y/Y, Commercial vehicle increased 24.9%, Off-Highway climbed 24.4%, and Power technologies rose 1.2%.
  • Adjusted EBITDA was $210 million versus $201 million last year.
  • Adjusted EPS of $0.41 missed the analyst consensus of $0.48.
  • Dana held $239 million in cash and equivalents as of September 30, 2021. Operating cash flow was a use of $75 million.
  • "Rising commodity costs, supply-chain constraints, and labor shortages across the entire global mobility industry continue to impact our business," said James Kamsickas, Dana chairman and CEO.
  • Dana announced yesterday that it terminated the agreement to acquire a portion of Modine Manufacturing Co's MOD automotive thermal-management business.
  • Outlook: Dana currently sees FY21 adjusted EPS of $1.65 - $2.05 against the consensus of $2.26. The company had expected adjusted EPS of $2.10 - $2.60 while announcing its Q2 results and expected around ~$2.45 at its Capital Markets Day on September 28, 2021.
  • The company now sees FY21 sales of $8.8 billion - $9 billion versus the consensus of $8.72 billion. 
  • "Our revised guidance is primarily driven by customer production levels that were lower and less consistent than we had previously expected, and by commodity inflation," said CFO Jonathan Collins.
  • Price Action: DAN shares are trading lower by 12.8% at $21.96 on the last check Tuesday.
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