Dana Clocks 6% Sales Growth In Q2, Beats Street Expectation

Dana Inc DAN reported second-quarter FY23 sales growth of 6.3% year-on-year to $2.748 billion, marginally beating the consensus of $2.74 billion.

The revenue increase was driven by higher market demand, cost-recovery actions, and conversion of sales backlog, partially offset by the translation of foreign currencies.

Adjusted EPS was $0.37 versus $0.08 in 2Q22, beating the consensus of $0.17.

Revenue from Light Vehicle increased 3.7% Y/Y, Commercial Vehicle increased 3.75%, Off-Highway climbed 9.6%, and Power Technologies sales rose 11%.

Adjusted EBITDA was $243 million (+50% Y/Y), and the margin expanded by 258 bps to 8.8%.

Operating cash flow for the quarter totaled $256 million compared to $257 million a year ago. Free cash flow was $134 million.

Dana held $484 million in cash and equivalents as of June 30, 2023. 

"The challenging production environment has persisted, but we have positioned ourselves well to take advantage as supply chains and customer order patterns continue to stabilize. As a result, we expect our momentum to carry through the back half of the year as demand remains strong across each of our end markets," commented James Kamsickas, Dana chairman and chief executive officer.

Dana has declared a dividend on its common stock of $0.10 per share, payable Sept. 1, 2023, to holders of common stock as of Aug. 11.

FY23 Outlook, raised: Dana expects adjusted EPS of $0.65-$1.05 (prior $0.25-$0.75) versus the consensus of $0.68.

The company expects FY23 revenue of $10.45 billion-$10.95 billion (prior view $10.35 billion-$10.85 billion) versus the consensus of $10.72 billion.

DAN sees Adjusted EBITDA of $800 million-$900 million (previous view $750 milion-$850 million).

Price Action: DAN shares are trading higher by 0.64% at $18.93 on the last check Friday.