Back to top

Image: Bigstock

Dana (DAN) to Report Q1 Earnings: What's in the Offing?

Read MoreHide Full Article

Dana Incorporated (DAN - Free Report) is set to report first-quarter 2019 results on May 2. In the last reported quarter, it delivered a positive earnings surprise of 7.6%.

In fact, the company delivered a positive earnings surprise in three of the trailing four quarters while missed estimates once, the average earnings surprise being 5.3%. Further, the long-term expected earnings growth rate for Dana (over three to five years) is currently pegged at 4.4%.

In the past three months, shares of the company have outperformed the industry it belongs to. Over this time frame, its shares have gained 11.4% while the industry rose 6.6%.

Let’s see how things are shaping up for this announcement.

Dana Incorporated Price and EPS Surprise

 

Dana Incorporated Price and EPS Surprise | Dana Incorporated Quote

Factors to Consider

Dana is a provider of technology driveline, sealing and thermal-management products. In early March, it entered a strategic partnership with Class 8 electrification company,Hyliion Incorporated. This move was in sync with Dana’s strategy of positioning it as the leader in e-Propulsion. This partnership is likely to have some positive influence on the company’s first-quarter 2019 results.

Moreover, in the same month, Dana completed the acquisition of the Drive Systems segment of Oerlikon Group, including the Graziano and Fairfield brands.  This acquisition expanded Dana’s capabilities in electrification and raised its manufacturing presence in key growth markets.

Earnings Whisper

Our proven model does not conclusively predict that the company is likely to beat on earnings this quarter. This is because, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.

Earnings ESP: Dana has an Earnings ESP of -12.33% as the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 64 cents and 73 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Note that we caution against Rank #4 and 5 (Sell-rated) stocks going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Here are a few auto stocks worth considering, comprising the right combination of elements to come up with an earnings beat this time around:

Meritor, Inc. has an Earnings ESP of +8.88% and a Zacks Rank of 3 at present. The company is expected to release financial results for second-quarter 2019 on May 1.
 

You can see the complete list of today’s Zacks #1 Rank stocks here.


Cummins Inc. (CMI - Free Report) has an Earnings ESP of +2.02% and a Zacks Rank #3 at present. The company’s financial results for first-quarter 2019 are slated to release on Apr 30.

Oshkosh Corporation (OSK - Free Report) has an Earnings ESP of +1.62% and a Zacks Rank #3 at present. The company’s financial results for second-quarter 2019 are slated to release on Apr 30.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Cummins Inc. (CMI) - $25 value - yours FREE >>

Dana Incorporated (DAN) - $25 value - yours FREE >>

Oshkosh Corporation (OSK) - $25 value - yours FREE >>

Published in