NEW YORK (TheStreet) -- Dana Holding Corp (DAN) shares are down -8.6% to $21.34 on Friday following the release of the company's first quarter earnings report.
The driveline technology provider reported sales of $1.688 billion in the quarter, slightly above first quarter 2013's $1.676 billion, but falling bellow analysts $1.71 billion guidance.
Net income for the quarter was $34 million, or 32 cents per diluted share, missing analysts consensus estimates by 7 cents.
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TheStreet Ratings team rates DANA HOLDING CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DANA HOLDING CORP (DAN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, DAN's share price has jumped by 38.42%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DAN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- DAN's revenue growth trails the industry average of 12.8%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $284.00 million or 30.27% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.94%.
- DANA HOLDING CORP's earnings per share declined by 41.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, DANA HOLDING CORP swung to a loss, reporting -$0.29 versus $1.40 in the prior year. This year, the market expects an improvement in earnings ($1.94 versus -$0.29).
- The gross profit margin for DANA HOLDING CORP is rather low; currently it is at 16.44%. Regardless of DAN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.58% trails the industry average.
- You can view the full analysis from the report here: DAN Ratings Report