Dana Incorporated (DAN) Misses Q4 EPS by 17c, Revenues Beat; Offers FY21 EPS/Revenue Guidance

Dana Incorporated (NYSE: DAN) reported Q4 EPS of $0.24, $0.17 worse than the analyst estimate of $0.41. Revenue for the quarter came in at $2.11 billion versus the consensus estimate of $1.93 billion.

• Sales for the fourth quarter of 2020 totaled $2.11 billion, compared with $1.99 billion in the same period of 2019, representing a $121 million improvement driven by strong customer demand and the conversion of sales backlog, primarily in the Light Vehicle segment.
• Net income attributable to Dana was $40 million for the fourth quarter of 2020, compared with $85 million in the same period of 2019. The difference was primarily due to higher interest expense, one-time costs, and taxes. Partially offsetting these higher expenses was a $33 million gain on investments.
• Reported diluted earnings per share was $0.27, compared with diluted earnings per share of $0.58 in the fourth quarter of 2019.
• Adjusted EBITDA for the fourth quarter of 2020 was $192 million, compared with $226 million for the same period in 2019. This was a result of higher incremental costs associated with elevated demand and the nonrecurrence of a $17 million indirect tax expense recovery in Brazil in 2019, along with accelerated investments in electrification.
• Diluted adjusted earnings per share were $0.24 in the fourth quarter of 2020, compared with $0.67 in the same period of the prior year. The lower year-over-year comparison was primarily due to lower earnings.
• Operating cash flow in the fourth quarter of 2020 was $191 million, compared with $349 million in the same period of 2019.
• Adjusted free cash flow was $46 million, compared with $218 million in the fourth quarter of 2019. Lower cash generation was driven by lower earnings, higher cash income taxes and interest, and lower cash generated from working capital as sales continued to recover from the COVID-related shutdowns.

Dana Incorporated (NYSE: DAN) today announced financial results for the fourth quarter and full-year 2020.

"Reflecting on 2020, it was truly a unique year and challenging environment. As a result of the hard work and dedication of the Dana team, we proved we could adapt and excel when faced with the most severe of business environments, delivering strong sales and rebounding margins as we ended the year with positive free cash flow," said James Kamsickas, Dana chairman and CEO. "We also further secured our leadership position in the e-Mobility space with 50 percent of our $700 million new business backlog coming from electric or hybrid programs, demonstrating our promise to lead in this fast-growing segment. Our success in rapidly penetrating the electric-vehicle market is a direct result of our strategy and the investments we have made over the past several years. As we move forward, we are well-positioned to capitalize on our momentum and realize the potential of our business."

GUIDANCE:

Dana Incorporated sees FY2021 EPS of $1.90-$2.40, versus the consensus of $2.20. Dana Incorporated sees FY2021 revenue of $8.05-8.55 billion, versus the consensus of $8.3 billion.

For earnings history and earnings-related data on Dana Incorporated (DAN) click here.

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