Dana Holding Earnings: Here’s Why Investors are Ambivalent Now

Dana Holding Corporation (NYSE:DAN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Dana Holding Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 36.36% to $0.28 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Decreased 15.23% to $1.68 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dana Holding Corporation reported adjusted EPS income of $0.28 per share. By that measure, the company missed the mean analyst estimate of $0.42. It missed the average revenue estimate of $1.75 billion.

Quoting Management: “Demand levels in a number of our key markets provided a bit of a headwind for us in the first quarter, but overall results were in line with our expectations. We continue to achieve solid margins in spite of challenging market conditions by focusing on those levers within our control,” said company President and Chief Executive Officer Roger J. Wood. “Three of our four businesses improved EBITDA margins over last year’s fourth quarter, further evidencing our continued focus on cost flexibility and contribution margins.”

Key Stats (on next page)…

Revenue increased 4.16% from $1.61 billion in the previous quarter. EPS decreased 26.32% from $0.38 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.54 to a profit $0.51. For the current year, the average estimate has moved down from a profit of $1.94 to a profit of $1.89 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)