NYSE$DAN

Dana Holding Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record sales and higher profit in the first quarter of 2023.

Dana Incorporated reported strong first-quarter results with sales of $2.64 billion, a 7% increase year-over-year. Net income attributable to Dana was $28 million, and adjusted EBITDA was $204 million, driven by healthy customer demand and new business.

  • Sales increased by $164 million, or 7 percent over last year, reaching $2.64 billion.
  • Net income attributable to Dana increased by $11 million over last year, totaling $28 million.
  • Diluted adjusted EPS increased by $0.09 per share to $0.25.
  • Adjusted EBITDA increased by $34 million, or 20 percent over last year, reaching $204 million.

Headline financials

Total Revenue

$2.64B

Previous: $2.48B+6.6%
EPS (adj)

$0.25

Previous: $0.16+56.3%
Adjusted EBITDA

$204M

Previous: $170M+20.0%
Free Cash Flow

$28M

Previous: $17M+64.7%
Net Income

$28M

Previous: $17M+64.7%
Operating Income

$90M

Previous: $66M+36.4%
Gross Profit

$229M

Previous: $197M+16.2%
Cash & Equivalents

$401M

Previous: $259M+54.8%
Total Assets

$7.89B

Previous: $8.05B-2.0%

Revenue & EPS history

Dana · Revenue · Quarterly

$2.64B

Q1 2023+6.6%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Dana · $1.48B total across 2 segments · Q1 2023

  • Light Vehicle
    $962M-2.3%
  • Commercial Vehicle
    $522M+12.7%

Forward guidance

The company reaffirmed its full-year guidance for 2023, with sales expected to be between $10.35 to $10.85 billion and adjusted EBITDA between $750 to $850 million.

Tailwinds

  • Sales growth supported by improved end-market demand, pricing actions, and market share gains
  • Gross inflation and related recoveries are now expected to be lower than prior estimate; net profit impact from inflation remains the same, as cost recovery actions are expected to offset all but ~$50M of inflation headwind
  • Continued investment in EV business offsetting profit contribution
  • Translation of foreign currency expected to be slightly less of a sales headwind due to the revised outlook for the relative value of the Mexican peso, Brazilian real, and Argentine peso
  • Steel price outlook slightly elevated from prior estimate, lowering the expected margin benefit by ~20 bps

Headwinds

  • Cost inefficiencies, driven by volatile customer production, and higher sales due to cost recoveries hindering margin
  • Free cash flow includes significant capital investment to support accelerated EV growth and roll-on business
  • ~60% effective tax rate included in adjusted EPS guide driven primarily by valuation allowances in U.S
  • Inflation is expected to impact profit by approximately $50 million despite cost recovery actions.
  • Continued investment in the EV business is offsetting profit contribution.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.6%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-0.5%

Avg return

30 days after

45%

30 / 66 earnings

Positive

+20.1%

Q2 2012

Best reaction

-24.4%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.4%-1.8%-10.7%
Q4 2025+5.3%+6.0%-4.4%
Q3 2025+7.9%+2.8%+11.9%
Q2 2025+7.2%+14.1%+34.5%
Q1 2025+5.8%+11.9%+28.0%
Q4 2024-0.5%-5.6%-13.8%
Q3 2024-24.4%-23.9%-1.4%
Q2 2024+3.0%-8.0%-4.1%
Q1 2024+5.1%+5.5%+10.1%
Q4 2023-8.8%-6.6%-7.8%
Q3 2023-8.0%-11.3%+3.2%
Q2 2023+0.9%-1.8%-17.2%
Q1 2023-0.2%-0.1%-6.5%
Q4 2022-15.3%-17.2%-27.2%
Q3 2022+8.7%+12.3%+24.1%
Q2 2022-4.5%-3.3%-10.9%
Q1 2022+1.3%-0.1%+9.3%
Q4 2021-11.3%-13.5%-18.8%
Q3 2021-11.8%-11.9%-4.8%
Q2 2021-0.9%-3.4%+0.3%
Q1 2021-4.4%-6.8%-2.0%
Q4 2020-2.3%+2.2%+10.9%
Q3 2020-1.0%-3.7%+20.1%
Q2 2020-11.3%-5.0%+9.5%
Q1 2020+3.3%-0.5%+21.1%
Q4 2019+4.1%+2.3%-46.4%
Q3 2019-3.5%+6.1%+0.8%
Q2 2019-18.5%-24.4%-33.6%
Q1 2019-5.0%-7.3%-23.8%
Q4 2018+15.8%+15.4%+5.4%
Q3 2018-10.6%-5.5%-10.3%
Q2 2018-2.3%+2.9%-3.5%
Q1 2018-5.5%-4.6%-9.8%
Q4 2017-5.4%-7.4%-13.6%
Q3 2017+4.8%+5.8%+10.0%
Q2 2017+1.8%+4.1%+1.9%
Q1 2017+4.0%+6.0%+13.8%
Q4 2016-0.9%-0.6%-4.7%
Q3 2016+2.0%+1.3%+16.1%
Q2 2016+15.6%+20.0%+25.0%
Q1 2016-7.3%
Q4 2015-9.7%
Q3 2015-1.2%
Q2 2015-4.9%
Q1 2015+1.1%
Q4 2014-2.0%
Q3 2014+14.4%
Q2 2014+2.9%
Q1 2014-9.9%
Q4 2013+6.0%
Q3 2013-16.3%
Q2 2013+5.5%
Q1 2013-2.9%
Q4 2012-1.0%
Q3 2012-0.4%
Q2 2012+20.1%
Q1 2012+6.1%
Q4 2011+3.5%
Q4 2009+3.5%
Q4 2010+3.5%
Q3 2010+8.3%
Q3 2011+8.3%
Q2 2011-3.6%
Q1 2011-1.3%
Q1 2010-1.3%
Q2 2010+2.8%

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