Dana Incorporated (NYSE: DAN) reported Q1 EPS of $0.75, $0.08 better than the analyst estimate of $0.67. Revenue for the quarter came in at $2.1 billion versus the consensus estimate of $1.93 billion.

Company Affirms 2018 Guidance

Improved end-market demand for key light-truck programs, off-highway equipment, and commercial vehicles, combined with sales from the new-business backlog, are driving an expected 10 percent growth in sales for 2018. Increased sales from the new-business backlog are expected to add approximately $300 million, and improved end-market demand is expected to accrete $200 million. Foreign currency translation will add an additional $150 million to the year-over-year sales comparison.

Adjusted EBITDA in 2018 is expected to improve by approximately $145 million from 2017, or 80 basis points. This improvement is driven primarily by higher sales levels, ongoing efficiency benefits, and enhanced acquisition synergies.

"Last month we raised our full-year guidance on the strength of our end markets and currency tailwinds. Our success this quarter is a result of those factors, as well as the conversion of our new business backlog. With the launch of the Jeep Wrangler program behind us and continued execution of our synergy plan related to recent acquisitions, we are confident in our outlook for 2018 and continued growth in 2019," said Jonathan Collins, executive vice president and chief financial officer of Dana.

2018 Full-year Financial Targets

• Sales of $7.75 to $8.05 billion;
• Adjusted EBITDA of $950 to $1,010 million, an implied adjusted EBITDA margin of approximately 12.4 percent;
• Diluted adjusted EPS1 of $2.75 to $3.05;
• Operating cash flow of approximately 7.5 percent of sales;
• Capital spending of approximately 4.0 percent of sales; and
• Free cash flow of approximately 3.5 percent of sales.

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