Dana Q1 Earnings Tops Estimates; Cuts FY22 EPS Outlook

Dana Q1 Earnings Tops Estimates; Cuts FY22 EPS Outlook
  • Dana Inc DAN reported first-quarter FY22 sales growth of 9.6% year-on-year to $2.48 billion, beating the consensus of $2.24 billion.
  • Light vehicle revenue fell 0.6% Y/Y, Commercial vehicles increased 32.7%, Off-Highway climbed 17.2%, and Power Technologies sales were flat.
  • Adjusted EBITDA was $170 million versus $234 million last year.
  • Selling, general and administrative expenses rose 9.2% Y/Y to $130 million.
  • Adjusted EPS of $0.16 beat the analyst consensus of $0.13.
  • Dana held $280 million in cash and equivalents as of March 31, 2022.
  • "External factors continue to pressure our margins and free cash flow as rapid inflation of energy, services, and labor are further driving up costs," said CFO Timothy Kraus.
  • "While we see some improvement late this year, we anticipate these factors will remain a profit headwind."
  • Outlook: Dana sees FY22 adjusted EPS of $1.05 - $1.55 (prior view $2.05 - $2.55) against the consensus of $1.98.
  • The company expects FY22 sales of $9.85 billion - $10.35 billion (previous view $9.6 billion - $10.1 billion) versus the consensus of $9.72 billion. 
  • Price Action: DAN shares are trading lower by 4.11% at $14.24 on the last check Wednesday.

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