Dana Incorporated Just Reported A Surprise Profit, And Analysts Lifted Their Estimates

Shareholders of Dana Incorporated (NYSE:DAN) will be pleased this week, given that the stock price is up 12% to US$14.59 following its latest quarterly results. It was overall a positive result, with revenues beating expectations by 2.1% to hit US$2.4b. Dana also reported a statutory profit of US$0.17, which was a nice improvement from the loss that the analysts were predicting. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus, from the seven analysts covering Dana, is for revenues of US$9.68b in 2025. This implies a noticeable 2.3% reduction in Dana's revenue over the past 12 months. Earnings are expected to improve, with Dana forecast to report a statutory profit of US$0.57 per share. In the lead-up to this report, the analysts had been modelling revenues of US$9.51b and earnings per share (EPS) of US$0.23 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

See our latest analysis for Dana

The consensus price target rose 6.1% to US$17.43, suggesting that higher earnings estimates flow through to the stock's valuation as well. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Dana at US$23.00 per share, while the most bearish prices it at US$11.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 3.0% annualised decline to the end of 2025. That is a notable change from historical growth of 7.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Dana is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dana following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Dana's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Dana going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Dana (1 is concerning!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.