Dana Overcomes Challenges With Q3 EPS Beat But Foresees $500M Sales Drop If No UAW Strike Resolution By Year's End
Portfolio Pulse from Nabaparna Bhattacharya
Dana Incorporated reported Q3 FY23 sales growth of 5% YoY to $2.669 billion, missing the consensus of $2.695 billion. However, its adjusted EPS of $0.30 beat the analyst consensus of $0.13. The company expects FY23 sales of $10.7 billion if the UAW strike lasts till Oct. 31, but this could drop to $10.2 billion if the strike lasts till Dec. 31. If no resolution is reached by year's end at all its Detroit 3 customers, including Ford Motor Company, Dana anticipates its sales to be approximately $500 million lower.
October 27, 2023 | 4:02 pm
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NEUTRAL IMPACT
Dana Incorporated's Q3 FY23 sales missed consensus but its adjusted EPS beat expectations. The ongoing UAW strike could significantly impact its FY23 sales.
Dana's Q3 sales missed expectations but its EPS beat the consensus, which could have a mixed impact on its stock. However, the ongoing UAW strike could negatively impact its FY23 sales, creating uncertainty for investors.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Ford Motor Company, a customer of Dana Incorporated, could be impacted by the ongoing UAW strike, potentially affecting Dana's sales.
Ford, being a customer of Dana, could be impacted by the ongoing UAW strike. This could potentially affect Dana's sales, creating a negative impact on Ford's operations.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50