Dana's FY24 Preliminary Results Highlight Increased Margins Amid EV Demand Slowdown; Stock Jumps
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
FY24 Preliminary Results: Dana Incorporated reported sales of approximately $10.3 billion for FY24, slightly above consensus expectations, but down from the previous year due to weaker demand in key sectors. Adjusted EBITDA increased to about $885 million, and the company announced a cost reduction target of $300 million through 2026.
FY25 Outlook and Business Restructuring: For FY25, Dana expects sales between $9.525 billion and $10.025 billion, with an adjusted EBITDA forecast of $925 million to $1.025 billion. The company plans to restructure its business segments and is considering selling its Off-Highway segment, which will be classified as discontinued operations once a deal is reached.
Analyst Views on DAN
Wall Street analysts forecast DAN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DAN is 26.60 USD with a low forecast of 24.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 30.210
Low
24.00
Averages
26.60
High
28.00
Current: 30.210
Low
24.00
Averages
26.60
High
28.00
About DAN
Dana Incorporated specializes in designing and manufacturing propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The Company is providing solutions for on-highway vehicles. The Company's technologies include drive systems (axles, driveshafts and transmissions); electrodynamic technologies (motors, inverters, software and control systems, battery-management systems, and fuel cell plates); sealing solutions (gaskets, seals, cam covers, and oil pan modules); thermal-management technologies (transmission and engine oil cooling, battery and electronics cooling, charge air cooling, and thermal-acoustical protective shielding), and digital solutions (active and passive system controls and descriptive and predictive analytics). The Company serves its global light vehicle and medium/heavy vehicle markets through two business units: Light Vehicle Systems and Commercial Vehicle Systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
