Shares of Dana Incorporated (NYSE:DAN), a global leader in solutions for improving performance, efficiency, and sustainability of powered vehicles and machinery, are down 13% as of 4 p.m. EDT after the company released third-quarter results.
Sales jumped 8% higher to $1.98 billion, better than analysts' estimates, and adjusted earnings per share jumped 31% over the prior year to reach $0.77 -- also ahead of analysts' estimates calling for $0.74 per share. Profit margin increased by 30 basis points compared to the prior year.
The company also announced significant business wins, such as being selected by Ford Motor Company to supply the Spicer SmartConnect disconnecting all-wheel drive (AWD) for the Edge program, starting in the 2019 model year.
Said James Kamsickas, Dana's president and CEO, in a press release: "Our team also continues to execute on strategic inorganic priorities, highlighted by the recent announcement of a definitive agreement to acquire the Drive Systems segment of the Oerlikon Group. Combined with the recent acquisition of TM4, Dana is the only mobility supplier with full e-Propulsion system capability."
Although Dana topped estimates and posted top- and bottom-line growth, the news wasn't enough to escape the downward trend the stock price has been stuck in throughout 2018:
While management believes the company is positioned for profitable growth, investors may not be sold on the company's near term -- new-vehicle sales in North America, the company's largest market, are plateauing. Management also affirmed its full-year 2018 guidance of sales between $7.75 billion to $8.05 billion and adjusted EPS between $2.75 and $3.05.