What's Going On With Dana Shares After Reporting Q1 Results?

Dana Incorporated DAN shares are trading lower on Tuesday after reporting first-quarter results.

The company reported adjusted earnings per share of 27 cents, beating the street view of 19 cents. 

Quarterly sales of $2.735 billion beat the analyst consensus of $2.684 billion.

Dana reported quarterly adjusted EBITDA of $223 million, an increase of $19 million over last year.

“We achieved 39 percent profit conversion on traditional organic sales in the quarter. This performance is well above our historical conversion for the first quarter and positions the company on a strong trajectory to achieve our full-year targets,” said James Kamsickas, Dana chairman and chief executive officer. 

The company reported adjusted EBITDA margin of 8.2%, a 50-basis-point improvement compared with 2023.

Company-wide efficiency improvements continue to offset the margin impact of inflation and spending on development for electric-vehicle products, Dana said.

Operating cash flow in the first quarter of 2024 was a use of $(102) million, compared with a use of $(170) million in the same period of 2023.  

“The Dana team is executing our core business and operating systems at a very high level, which is continuing to drive exceptional customer satisfaction that supports market share gains and our new business backlog, including traditional ICE, hybrid, and EV programs,” Kamsickas added.

The board declared a quarterly dividend of $0.10 per share, payable May 31, 2024, to holders of Dana common stock as of May 10.

Outlook: Dana Incorporated reaffirmed FY24 EPS as well as sales guidance, with sales at $10.65 billion-$11.15 billion versus estimate of $10.89 billion.

The company expects adjusted EBITDA of $875 million to $975 million, an implied adjusted EBITDA margin of approximately 8.5 percent at the midpoint of the range.

Price Action: DAN shares are trading lower by 2.18% to $12.35 at last check Tuesday.