Dana Shares Plummet On Q3 Earnings Miss, FY21 Outlook Cut

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.