What happened
Dana(NYSE: DAN) was hardly the first name in the auto parts sector for many investors this week. The company's shares were skidding into a 16% decline week to date as of Friday before market open, according to data compiled by S&P Global Market Intelligence, largely because of its latest earnings report.
So what
Dana, which specializes in propulsion and energy management products for the automotive industry, published its fourth-quarter and full-year 2022 figures before market open on Tuesday.
Although it beat (barely) analyst expectations on the top line, it posted a surprise net loss for the period.
And that was only one source of concern for investors. Dana proffered guidance for full-year 2023, and its profitability forecast landed well short of the average analyst projection. The company is guiding for $0.25 to $0.75 per share for net income, which isn't anywhere near the collective $1.73 modeled by pundits.
Now what
Some of those analysts turned more bearish on Dana stock, with a clutch of price target cuts. None of these were drastic, but together they gave the impression of eroding confidence in Dana's future.
Among the major researchers wielding scissors was Wells Fargo, whose analyst Colin Langan now feels the stock is worth $15 per share from his previous $17. He maintained his equal weight (hold, in other words) recommendation on the stock.
J.P. Morgan's Ryan Brinkman reduced his Dana level to $18 per share; the preceding price target was $20. He's a bit more positive than Langan, as he's keeping the stock's overweight (buy) recommendation intact.
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