Why Dana (DAN) Shares Are Plunging Today - Dana (NYSE:DAN)

Dana Inc DAN reported fourth-quarter FY22 sales growth of 12.4% year-on-year to $2.56 billion, beating the consensus of $2.51 billion.
Light vehicle revenue climbed 5.7% Y/Y, Commercial vehicles increased 26%, Off-Highway climbed 11.8%, and Power Technologies sales rose 18.6%.
Adjusted EBITDA was $176 million versus $118 million last year. Selling, general and administrative expenses rose 8% Y/Y to $121 million.
Adjusted EPS of $(0.10) missed the analyst consensus of $0.26.
Dana held $442 million in cash and equivalents as of Dec. 31, 2022. Cash provided by operating activities for the quarter totaled $342 million, with a free cash flow of $202 million.
"We experienced unexpected headwinds in the fourth quarter, including higher raw material costs and lower commercial recoveries, additional costs for EV program wins, increased customer schedule volatility, and incremental costs to scale operations," said CFO Timothy Kraus.
Outlook: Dana sees FY23 adjusted EPS of $0.25 - $0.75, below the consensus of $1.73.
The company expects FY23 revenue of $10.35 billion - $10.85 billion (consensus $10.51 billion) and an adjusted EBITDA of $750 million - $850 million.
Price Action: DAN shares are trading lower by 11.62% at $16.66 on the last check Tuesday.

Dana Drops As Q4 Earnings Hit By Incremental Costs; Forecasts Huge FY23 Bottom-Line Miss