NEW YORK (TheStreet) -- Dana Holding Corporation (DAN) - Get Report reported disappointing third-quarter figures and weak full-year guidance on Tuesday, causing shares to drop 14.8% to $19.28 by market close.
The auto parts maker reported earnings of 47 cents a share on revenue of $1.67 billion. Analysts surveyed by Yahoo! Finance had expected earnings of 54 cents on revenue of $1.78 billion. The negative effects of currency exchanges and one-time charges depressed sales $79 million lower than a year earlier.
"Despite challenging demand in a number of end markets we serve around the world, our team continued to deliver on the performance of the business," CEO Roger J. Wood said in a statement.
The Ohio-based manufacturer lowered its full-year estimates, due to soft sales of heavy commercial vehicles in North America and the impact of weak construction and mining demand for off-highway construction equipment.
Dana now expects full-year revenue of $6.7 billion and earnings of $1.76 a share, excluding share repurchase expenses expected in the fourth quarter. Analysts had hoped for earnings of $1.89 a share on revenue of $7.01 billion.
TheStreet Ratings team rates Dana Holding Corp as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate Dana Holding Corp (DAN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid long-term stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
- You can view the full analysis from the report here: DAN Ratings Report