Dana (NYSE:DAN) Posts Earnings Results, Misses Expectations By $0.28 EPS

Dana (NYSE:DAN) issued its quarterly earnings results on Wednesday. The auto parts company reported $0.41 earnings per share for the quarter, missing analysts’ consensus estimates of $0.69 by ($0.28), FiscalAI reports. The firm had revenue of $2.04 billion for the quarter, compared to the consensus estimate of $1.97 billion. The company’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.07 earnings per share.

Here are the key takeaways from Dana’s conference call:

• Third-quarter performance improved materially: Sales rose $121 million year over year to $2.038 billion, while adjusted EBITDA increased $56 million to $218 million; the margin expanded 220 basis points to 10.7% and adjusted EPS reached $0.41.
• Dana raised its full-year sales outlook to approximately $7.8 billion, citing stronger commercial-vehicle demand and higher commodity recoveries. Adjusted EBITDA remains guided to $825 million, with adjusted free cash flow at approximately $325 million.
• The Eaton Mobility transaction remains on track to close around the end of the first quarter of 2027, with only one regulatory approval outstanding. Management remains confident in achieving $250 million of annual run-rate synergies within 24 months, including approximately $75 million in 2027.
• Shareholder returns remain a focus: Dana repurchased $200 million of stock in the third quarter and now targets $469 million of repurchases in 2026. However, the company has not yet finalized whether buybacks can resume after the Eaton transaction closes.
• Inflation remains a significant risk, particularly in energy and freight, where customer contracts generally do not provide automatic recovery mechanisms. Management described the gross inflation exposure as a nine-digit figure, while aftermarket demand is facing additional headwinds in Europe, the Middle East and Asia.

Dana Trading Down 3.9%

Shares of NYSE DAN traded down $1.07 during mid-day trading on Wednesday, reaching $26.13. The company had a trading volume of 921,959 shares, compared to its average volume of 1,477,126. The company has a 50-day moving average price of $29.31 and a two-hundred day moving average price of $31.13. The stock has a market cap of $2.61 billion, a PE ratio of 2.59 and a beta of 2.05. Dana has a 1-year low of $18.95 and a 1-year high of $39.56.

Dana Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Friday, November 6th will be issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Friday, November 6th. Dana’s payout ratio is presently 4.78%.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on DAN shares. UBS Group dropped their target price on Dana from $38.00 to $36.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Zacks Research lowered Dana from a “hold” rating to a “strong sell” rating in a research note on Friday, October 16th. Barclays lifted their price target on Dana from $33.00 to $35.00 and gave the company an “equal weight” rating in a research report on Friday, August 14th. Weiss Ratings downgraded Dana from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Finally, Royal Bank Of Canada boosted their price objective on Dana from $33.00 to $37.00 and gave the stock an “outperform” rating in a research note on Friday, August 7th. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $36.67.

About Dana

Dana Incorporated (NYSE: DAN) is a global supplier of drivetrain, motion, and thermal-management technologies for the automotive, commercial-vehicle, and off-highway industries. The company develops systems that help vehicles transmit power, manage heat, and operate efficiently across conventional, hybrid, and electric powertrains.

Dana’s products include axles, driveshafts, gearboxes, transmissions, sealing solutions, thermal-management systems, and components for electrified propulsion.