The market expects Dana (DAN) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the s ...

Core Viewpoint - Several companies are enhancing shareholder value through dividends, buybacks, and debt paydown, which can lower risk and potentially increase stock value [1][2]. Group 1: Thor Industries - Thor Industries announced a $400 million buyback program, representing approximately 8.1% of its market capitalization [2][3]. - The company has repurchased over 340,000 shares, spending over $29 million from June 6 to June 23, indicating a belief that its shares are undervalued [3]. - Thor Industries has a dividend yield of 2.2%, contributing to its overall yield generation strategy [3]. Group 2: Fair Isaac - Fair Isaac announced a $1 billion buyback program, which is about 2.2% of its market capitalization of approximately $45 billion [4][5]. - The company has increased its buyback spending to nearly $300 million per quarter over the last 12 months, suggesting a view that its shares are undervalued [5][6]. - As of July 3, Fair Isaac's stock was trading around 21% below its all-time high, with a consensus price target implying over 24% upside potential [6]. Group 3: Dana - Dana plans to reduce its debt significantly by using $2.4 billion from the sale of its off-highway business, targeting a $2 billion debt paydown, which equates to a 77% debt paydown yield [8][9]. - The company intends to allocate $1 billion for dividends and buybacks through 2027, representing over 38% of its market capitalization [9]. - Dana's current dividend yield is 2.2%, and it aims to utilize multiple pathways to generate shareholder value [9][10].

Core Insights - Investors are evaluating the attractiveness of Dana (DAN) and Ferrari (RACE) for value investment opportunities [1] - Both companies currently have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3] Valuation Metrics - DAN has a forward P/E ratio of 11.21, while RACE has a significantly higher forward P/E of 49.17 [5] - The PEG ratio for DAN is 1.08, suggesting a more favorable valuation relative to its expected earnings growth, compared to RACE's PEG ratio of 5.53 [5] - DAN's P/B ratio stands at 1.76, indicating a lower market value relative to its book value, whereas RACE has a P/B ratio of 31.3 [6] Value Grades - Based on the valuation metrics, DAN holds a Value grade of A, while RACE has a Value grade of D, suggesting that DAN is currently the superior value option [6][7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks with recent price momentum may be a safer approach [3] Group 2: Stock Analysis - Dana (DAN) - Dana (DAN) has shown a four-week price change of 3%, indicating growing investor interest [4] - Over the past 12 weeks, DAN's stock price has increased by 38.9%, with a beta of 2.11, suggesting it moves 111% higher than the market [5] - DAN has a Momentum Score of A, indicating a favorable time to invest [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to DAN's Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - DAN is trading at a Price-to-Sales ratio of 0.25, indicating it is reasonably valued at 25 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides DAN, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [8] - Investors can explore over 45 Zacks Premium Screens tailored to identify winning stock picks [9]

Summary of Dana (DAN) 2025 Conference Call Company Overview - Dana is a leading supplier of drivetrain and e-propulsion systems, focusing on commercial and light vehicle markets [1][16]. Key Developments - **Off Highway Divestiture**: Dana announced the sale of its off-highway business to Allison for an enterprise value of approximately $2.7 billion, expecting to net around $2.4 billion after taxes and fees [2][7]. This divestiture is seen as a strategic move to enhance shareholder value and improve the company's balance sheet [3][4]. Financial Implications - **Debt Repayment**: Dana plans to use about $2 billion from the sale proceeds to reduce its debt, targeting a net leverage of 1x over the business cycle [9][37]. - **Capital Returns**: The company announced a plan to return up to $1 billion to shareholders through 2027, with $550 million expected to be returned around the closing of the deal [10][11]. Strategic Focus - **New Dana**: Post-divestiture, Dana aims to focus on its remaining businesses, enhancing profitability and efficiency while delivering best-in-class technologies [16][17]. The company is undergoing a cost reduction program targeting $300 million in savings, with $225 million expected to be realized this year [18][19]. Market Dynamics - **Production Stability**: Dana has observed stability in production schedules for light vehicle programs, which is beneficial for converting sales into profit [30][31]. However, there is ongoing weakness in the commercial vehicle sector due to macroeconomic factors [30]. Competitive Positioning - **Hybrid and EV Opportunities**: Dana sees significant growth potential in hybrid and electric vehicle markets, emphasizing its energy source agnostic approach [50][52]. The company is well-positioned to leverage its technologies in both traditional and emerging powertrains [51][56]. Operational Efficiency - **Cost Structure Review**: Dana is actively reviewing its cost structure, particularly in SG&A, to enhance operational efficiency [20][21]. The management is focused on maintaining profitability without pursuing growth for its own sake [40][41]. Customer Relationships - **Positive Customer Response**: Customers have responded positively to the divestiture, appreciating Dana's strong balance sheet and commitment to investing in their programs [28][49]. Industry Outlook - **M&A Considerations**: While there is ongoing discussion about consolidation in the industry, Dana is currently prioritizing the optimization of its existing portfolio over new acquisitions [45][46]. Conclusion - Dana is strategically positioning itself for future growth by focusing on its core businesses, enhancing operational efficiency, and capitalizing on opportunities in the hybrid and electric vehicle markets. The divestiture of the off-highway business is a pivotal move aimed at strengthening the company's financial health and shareholder returns.

Dana (DAN) Update / Briefing June 12, 2025 08:00 AM ET Speaker0 Good morning, and welcome to Dana Incorporated's Off Highway Business Divestiture Update Webcast and Conference Call. My name is Sarah, and I will be your conference facilitator. Please be advised that the meeting today, both the speakers' remarks and Q and A session, will be recorded for replay purposes. There will be a brief question and answer period after the speakers' remarks, and we will take questions from our sell side equity analysts o ...

Dana Incorporated Off -Highway Divestiture Update June 12, 2025 Value Others | Inspire Innovation | Grow Responsibly | Win Together Value Others | Inspire Innovation | Grow Responsibly | Win Together Divestiture of Off-Highway Business Transaction Transformative action Transformative Transaction Delivering Significant Value © 2025 Dana 1 Forward-Looking Statements Certain statements and projections contained in this communication are, by their nature, forward-looking within the meaning of the Private Securi ...

Financial Performance - Sales for the first quarter of 2025 totaled $2.35 billion, a decrease from $2.74 billion in the same period of 2024[3] - Net income attributable to Dana was $25 million, or $0.17 per share, compared to $3 million, or $0.02 per share in Q1 2024, representing a net income margin of 1 percent[4] - Adjusted net income for Q1 2025 was $19 million, or $0.13 per share, down from $37 million, or $0.26 per share in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $188 million, or 8 percent of sales, compared to $223 million, or 8.2 percent of sales in Q1 2024[6] - Net sales for Q1 2025 were $2.352 billion, a decrease from $2.735 billion in Q1 2024, representing a decline of approximately 14%[24] - Net income for Q1 2025 was $30 million, compared to a net loss of $14 million in Q1 2024, indicating a significant turnaround[25] - Comprehensive income attributable to the parent company was $57 million in Q1 2025, a recovery from a comprehensive loss of $14 million in Q1 2024[25] - Adjusted EBITDA for the three months ended March 31, 2025, was $88 million, compared to $223 million for the same period in 2024, indicating a significant decline[30] - Net income attributable to the parent company for Q1 2025 was $25 million, down from $3 million in Q1 2024[31] - Adjusted net income attributable to the parent company decreased to $19 million in Q1 2025 from $37 million in Q1 2024[31] - Diluted adjusted EPS for Q1 2025 was $0.13, compared to $0.26 in Q1 2024, reflecting a 50% decrease[31] Cash Flow and Liquidity - Operating cash flow in Q1 2025 was a use of $37 million, improved from a use of $102 million in Q1 2024[7] - Adjusted free cash flow was a use of $101 million in Q1 2025, compared to a use of $168 million in Q1 2024[7] - Cash used in operating activities was $37 million for the three months ended March 31, 2025, compared to $102 million in the same period in 2024, showing improved cash flow management[27] - The net cash provided by financing activities was $951 million, indicating strong liquidity support[27] - The net decrease in cash, cash equivalents, and restricted cash was $164 million, highlighting cash management challenges[27] - Cash and cash equivalents increased to $507 million in Q1 2025, up from $494 million at the end of 2024, showing a growth of about 2.6%[26] - Cash and cash equivalents at the end of the period were $523 million, compared to $387 million in the previous period, indicating a significant increase[18] - Net cash used in operating activities was $(37) million for the three months ended March 31, 2025, compared to $(102) million in the same period of 2024[28] - Adjusted free cash flow for Q1 2025 was $(101) million, compared to $(168) million in Q1 2024[79] Cost Management and Savings - The company is targeting $225 million in cost savings for 2025 as part of its accelerated cost-savings plan[9] - Dana is accelerating its cost-savings plan, increasing the target from $175 million to $225 million for 2025[40][44] Sales and Market Performance - The company expects slight sales increases due to tariff recoveries and currency translation offsetting weaker end-market demand[8] - Light Vehicle Systems sales decreased by $151 million year-over-year, while Commercial Vehicle Systems sales decreased by $63 million[68] - Sales of light vehicles were $1,180 million, down from $1,324 million year-over-year, indicating a decrease in this segment[29] - Sales of commercial vehicles were $568 million, compared to $653 million in the previous year, also reflecting a decline[29] - Off-Highway segment sales decreased to $604 million in Q1 2025, a decline of 20% compared to $758 million in Q1 2024[77] Assets and Liabilities - Total assets increased to $7.800 billion as of March 31, 2025, up from $7.485 billion at the end of 2024, reflecting a growth of about 4.2%[26] - Current liabilities rose to $2.828 billion in Q1 2025, compared to $2.561 billion in Q4 2024, marking an increase of approximately 10.4%[26] - Long-term debt increased to $2.428 billion in Q1 2025, compared to $2.389 billion in Q4 2024, reflecting a rise of about 1.6%[26] - The company reported a total current assets of $4.031 billion in Q1 2025, an increase from $3.703 billion in Q4 2024, representing a growth of approximately 8.8%[26] Strategic Initiatives - The company is focusing on market expansion and new product development to drive future growth[29] - The outlook for the upcoming quarters includes strategic initiatives aimed at improving operational efficiency and enhancing product offerings[29] - Dana is in the process of selling its non-core European Off-Highway hydraulics business, which is currently classified as held for sale[5] Expenses and Charges - Strategic transaction expenses increased to $15 million in Q1 2025 from $2 million in Q1 2024, highlighting increased costs associated with new initiatives[31] - Restructuring charges remained consistent at $5 million for both Q1 2025 and Q1 2024, indicating ongoing restructuring efforts[31] - Depreciation expenses amounted to $961 million, while amortization expenses were $55 million, reflecting ongoing investment in assets[27] - The company reported stock compensation expenses of $136 million, which may impact future earnings[27] - Interest expense remained stable at $39 million for both Q1 2025 and Q1 2024[78]

Core Viewpoint - Dana Incorporated has reached a definitive agreement to sell its Off-Highway business to Allison Transmission Holdings for $2.7 billion, which is 7 times the expected 2025 adjusted EBITDA of the Off-Highway business [1][6]. Group 1: Transaction Details - The transaction is expected to close in late Q4 2025, pending regulatory approvals and closing conditions [1]. - Dana anticipates generating $2.4 billion in net cash proceeds after tax and other expenses, planning to repay approximately $2 billion of debt to achieve a target net leverage of about 1x over the business cycle [2]. Group 2: Strategic Implications - The sale supports Dana's strategy to become a streamlined supplier focused on light- and commercial-vehicle systems, both traditional and electrified [2]. - The transaction is expected to strengthen Dana's balance sheet and reduce business complexity, allowing for significant capital return to shareholders [2][6]. Group 3: Capital Return Program - Dana's board has authorized a $1 billion capital return program through 2027, with $550 million to be returned to shareholders at or before the closing of the Off-Highway business sale [3][6]. Group 4: Company Overview - Dana reported sales of $10.3 billion in 2024 and employs 39,000 people across 30 countries [11]. - The company is recognized for its ethical practices and responsible operations, being named among the "World's Most Ethical Companies" and "America's Most Responsible Companies" for 2025 [11].

Core Viewpoint - Allison Transmission Holdings Inc. has announced a definitive agreement to acquire the Off-Highway business of Dana Incorporated for approximately $2.7 billion, which aligns with its strategic priorities to expand its market presence and enhance core technologies [1][3][6] Company Overview - Allison Transmission is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles, recognized as the largest global manufacturer of medium- and heavy-duty fully automatic transmissions [11] - The company operates in over 150 countries and has regional headquarters in the Netherlands, China, and Brazil, with manufacturing facilities in the USA, Hungary, and India [11] Acquisition Details - The acquisition is expected to be immediately accretive to Allison's diluted earnings per share and is anticipated to generate annual run-rate synergies of approximately $120 million [6] - The transaction will be financed through a combination of cash on the balance sheet and debt, and is expected to close late in the fourth quarter of 2025, pending regulatory approvals [6] Strategic Importance - This acquisition will enable Allison to offer a wider range of commercial-duty powertrain and industrial solutions to a global customer base, enhancing its competitive position in the market [3][4] - Dana's Off-Highway business operates in over 25 countries and is recognized for its industry-leading powertrain technologies, including hybrid and electric drive systems [4][5] Leadership Statements - David Graziosi, Chair and CEO of Allison, emphasized the transformative nature of the acquisition, aiming to empower customers with advanced propulsion and drivetrain solutions [4] - R. Bruce McDonald, Chair and CEO of Dana, expressed confidence that the off-highway business will thrive under Allison's leadership, allowing Dana to focus on its core priorities [5]