Dana Shares Slide On Q2 Bottom-Line Miss, FY22 EPS Outlook Cut

Dana Shares Slide On Q2 Bottom-Line Miss, FY22 EPS Outlook Cut
  • Dana Inc DAN reported second-quarter FY22 sales growth of 17.3% year-on-year to $2.59 billion, beating the consensus of $2.45 billion.
  • Light vehicle revenue rose 15.5% Y/Y, Commercial vehicles increased 31%, Off-Highway climbed 15%, and Power Technologies sales rose 9.3%.
  • Adjusted EBITDA was $162 million versus $233 million last year.
  • Selling, general and administrative expenses rose 3.2% Y/Y to $130 million.
  • Adjusted EPS of $0.08 missed the analyst consensus of $0.26.
  • Dana held $340 million in cash and equivalents as of June 30, 2022. Net cash provided by operating activities totaled $257 million.
  • DAN's quarterly dividend of $0.10 per share is payable September 2, 2022, to holders of common stock as of August 12.
  • "While strong demand, the launching of our new business backlog, and the recovery of commodity costs continued to fuel sales growth for Dana in the second quarter, margins were impacted as a result of record inflation and rising material costs, ongoing supply-chain disruptions, and volatile customer demand schedules that are affecting the entire mobility industry," said chairman and CEO James Kamsickas.
  • Outlook: Dana cut its FY22 adjusted EPS outlook to $0.60 - $0.90 (prior view $1.05 - $1.55) against the consensus of $1.24.
  • The company tightened its FY22 sales forecast to $10 billion - $10.2 billion (prior view $9.85 billion - $10.35 billion) versus the consensus of $10.04 billion. 
  • "Our adjusted profit targets reflect the difficult environment that continues to impact the entire mobility industry as a result of global supply-chain disruptions and record cost inflation," said CFO Timothy Kraus.
  • Price Action: DAN shares are trading lower by 4.99% at $15.90 on the last check Wednesday.

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