Explore Dana’s Fair Values from the Community and select yours
Investors in Dana Incorporated (NYSE:DAN) had a good week, as its shares rose 6.7% to close at US$18.75 following the release of its second-quarter results. It was not a great result overall. While revenues of US$2.6b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 10% to hit US$0.19 per share. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the consensus from Dana’s five analysts is for revenues of US$7.53b in 2025, which would reflect a painful 24% decline in revenue compared to the last year of performance. The company is forecast to report a statutory loss of US$0.20 in 2026, a sharp decline from a profit over the last year. Before this earnings report, the analysts had been forecasting revenues of US$7.53b and earnings per share (EPS) of US$1.63 in 2025. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year – a clear dip in sentiment compared to the previous outlook of a profit.
Check out our latest analysis for Dana
As a result, there was no major change to the consensus price target of US$23.71, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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$26.00 per share, while the most bearish prices it at US$18.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 43% by the end of 2025. This indicates a significant reduction from annual growth of 6.4% 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 13% 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 biggest low-light for us was that the forecasts for Dana dropped from profits to a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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.
Don’t forget that there may still be risks. For instance, we’ve identified 3 warning signs for Dana (2 are a bit concerning) you should be aware of.
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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.