Dana Incorporated ( NYSE: DAN ) swung lower in early trading on Tuesday after missing estimates with its Q4 earnings report .
The auto supplier said it experienced unexpected headwinds in the quarter. CFO Timothy Kraus pointed to higher raw material costs and lower commercial recoveries, additional costs for electric vehicle program wins, increased customer schedule volatility, and incremental costs to scale operations,"
On Wall Street, CFRA dropped its rating on Dana ( DAN ) to Sell from Hold in reaction to the report and clipped the 12-month price target by $2 to $14 based on a 2024 P/E of 8.8X.
"DAN's release marks the worst one we have seen so far this quarter from any U.S. auto supplier," noted analyst Garrett Nelson. The firm's loss in confidence in Dana ( DAN ) was tied not only to the big miss and much weaker-than-expected guidance, but also the expectation that margin pressures will remain and the company's leverage ratios will stay elevated.
Shares of Dana ( DAN ) fell 5.05% in premarket trading to $17.90 vs. the 52-week trading range of $11.17 to $22.47.
For further details see:
Dana goes in reverse after profit miss, CFRA downgrade