Dana Incorporated (NYSE:DAN) shares are losing ground Tuesday after the company’s Q4 results fell short of Wall Street’s expectations.
Shares were down 9.6% to the lowest level since mid-November.
Despite record full-year revenue and a 110 basis point expansion in the company’s adjusted EBITDA margin, the United Autoworkers strike in Q4 2023 negatively impacted profit and sales for the light vehicle driveline segment which were down 10% in Q4 year-over-year.
The company reported a narrower loss of $0.08 per share versus $0.10 per share in the same quarter on $2.5B in sales, down from $2.6B a year ago. This missed the Street estimate by $0.03 and $90M, respectively.
Adjusted EBITDA in 2023 fell to $156M from $176M. Cash and cash equivalents increased to $529M from $425M.
For 2024, the company expects a profit of $0.35 to $0.85 per share on $10.65B-$11.15B in sales. This compares to estimates of $10.97B in sales. Adjusted EBITDA is forecasted to be between $875M-$975M for an implied adjusted EBITDA margin of ~8.5%.
“We are building on this strong momentum, as we expect to further expand sales and profit margin into 2024. Our record three-year new business backlog has grown to $950M, marking the seventh consecutive year we have recorded an increase,” Dana CEO James Kamsickas said.