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Dana Gears Up to Report Q1 Earnings: Here's What to Expect

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Dana Incorporated (DAN - Free Report) is slated to release first-quarter 2025 results on April 30, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 16 cents and $2.27 billion, respectively.

For the first quarter, the consensus estimate for Dana’s earnings has moved down by 7 cents in the past 60 days. Its bottom-line estimates imply 700% growth from the year-ago reported numbers. 

The Zacks Consensus Estimate for DAN's quarterly revenues implies a year-over-year decline of 16.88%. The company's earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 11.79%. This is depicted in the graph below:

Dana Incorporated Price and EPS Surprise

Dana Incorporated Price and EPS Surprise

Dana Incorporated price-eps-surprise | Dana Incorporated Quote

Q4 Highlights

In the fourth quarter of 2024, DAN’s adjusted EPS of 25 cents beat the Zacks Consensus Estimate of 10 cents and increased from the loss of 8 cents reported in the year-ago quarter. The company reported net sales of $2.33 billion, which missed the Zacks Consensus Estimate of $2.35 billion. The top line also declined 5.6% year over year.

Things to Note

In 2024, Dana reported an adjusted EBITDA margin of 8.6%, which improved 60 basis points from 2023 due to cost-saving efforts and improved efficiencies throughout the organization. For 2025, the company anticipates the adjusted EBITDA margin to reach 10%. Improving EBITDA margin is likely to have improved the company’s margin performance in the first quarter of 2025. 

However, for 2025, the company expects foreign currency headwind to impact sales by approximately $195 million. The company expects commodity headwind to affect sales by around $30 million due to falling steel and other commodity prices. Dana expects 2025 sales in the range of $9.525-$10.025 billion compared with $10.28 billion reported in 2024, as a result of lower end-market demand and the delay in some EV programs. Expected decline in the company’s sales is likely to have impacted its top-line performance in the first quarter of 2025.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Dana for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.

Earnings ESP: DAN has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is pegged at par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Zacks Rank: It currently carries a Zacks Rank #3.

Stocks With the Favorable Combination

Here are some players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time around.

Lear Corporation (LEA - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank #3 at present. The company is set to release first-quarter 2025 results on May 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for LEA’s to-be-reported quarter’s earnings and revenues is pegged at $2.62 per share and $5.52 billion, respectively. LEA beat earnings estimates in each of the trailing four quarters, the average surprise being 9.59%.

Ferrari N.V. (RACE - Free Report) has an Earnings ESP of +10.75% and a Zacks Rank #3 at present. The company is set to release first-quarter 2025 results on May 6. 

The Zacks Consensus Estimate for RACE’s to-be-reported quarter’s earnings and revenues is pegged at $2.36 per share and $1.85 billion, respectively. Ferrari beat earnings estimates in each of the trailing four quarters, the average surprise being 11.10%.

BorgWarner Inc. (BWA - Free Report) has an Earnings ESP of +0.28% and a Zacks Rank #3 at present. The company is set to release first-quarter 2025 results on May 7. 

The Zacks Consensus Estimate for BWA’s to-be-reported quarter’s earnings and revenues is pegged at 97 cents per share and $3.38 billion, respectively. BorgWarner beat earnings estimates in each of the trailing four quarters, the average surprise being 17.02%.


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