Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:Dana (DAN) : Thiscompany which is a provider of technology driveline, sealing and thermal-management products, has seen the Zacks Consensus Estimate for its current year earnings increasing 15.4% over the last 60 day.SouthState Corporation (SSB) : This financial services company which provides consumer, commercial, mortgage and wealth management solutions throughout Florida, Alabama, Georgia, the Carolinas and Virginia, has seen the Zac ...

Financial Performance - Total consolidated sales for 2024 were $10,284 million, a decrease of 2.6% from $10,555 million in 2023[18]. - The company's 2024 net sales were $10,284 million, a decrease of $271 million or 2% from 2023[143]. - Adjusted EBITDA for 2024 was $885 million, up from $845 million in 2023[170]. - The adjusted EBITDA outlook for 2025 is projected to be between $925 million and $1,025 million, reflecting a 140 basis-point improvement over 2024[140]. - Free cash flow improved to $70 million in 2024, compared to a negative $25 million in 2023[173]. - The company anticipates free cash flow of $225 million at the midpoint of its guidance range for 2025, benefiting from higher adjusted EBITDA and improved working capital efficiency[140]. Sales by Segment - Light Vehicle segment sales increased to $4,224 million, representing 41.1% of total sales, up from 38.2% in 2023[18]. - Commercial Vehicle segment sales decreased by 3% to $2,005 million in 2024, with EBITDA margin declining from 4.2% to 3.3%[160]. - Off-Highway segment sales decreased to $2,767 million, accounting for 26.9% of total sales, down from 30.2% in 2023[18]. - Power Technologies segment generated $1,288 million in sales, representing 12.5% of total sales, an increase from 11.8% in 2023[18]. - Sales by operating segment were Light Vehicle – 41%, Commercial Vehicle – 19%, Off-Highway – 27%, and Power Technologies – 13%[118]. Cost and Expenses - Research and development costs were $229 million in 2024, a slight decrease from $237 million in 2023[32]. - Total engineering expenses, including research and development, were $360 million in 2024, down from $369 million in 2023[32]. - The gross margin for 2024 was $876 million, maintaining 8.5% as a percentage of sales, despite a decrease of $24 million from 2023[147]. - Net restructuring charges increased significantly from $25 million in 2023 to $76 million in 2024[150]. - Interest income decreased from $17 million in 2023 to $15 million in 2024, while interest expense rose from $154 million to $161 million[155]. Market and Economic Conditions - Rising interest rates could negatively affect demand for products and the financial condition of customers[51]. - The company is exposed to risks associated with public health crises, which could disrupt operations and financial performance[49]. - The global construction equipment market declined by 5% in 2024, with a continued outlook for market weakness in 2025[134]. - South America saw a 41% increase in medium- and heavy-duty truck production in 2024 compared to 2023, driven by improved economic conditions[133]. Strategic Focus and Investments - The company is focused on enhancing the efficiency, performance, and safety of transportation solutions, investing in both internal combustion and electric vehicle technologies[33]. - The company has invested in SuccessFactors for integrated performance management and learning development[40]. - Dana plans to divest its Off-Highway business to focus on core on-highway markets and improve efficiency[122]. - The Power Technologies segment will be integrated into the Light Vehicle and Commercial Vehicle segments in Q1 2025[129]. Cash Flow and Liquidity - As of December 31, 2024, the company had consolidated debt obligations of $2.63 billion, cash and cash equivalents of $494 million, and unused revolving credit capacity of $1.14 billion[94]. - Cash provided by operating activities in 2024 was $450 million, a decrease from $476 million in 2023[180]. - The company expects to meet its cash requirements for capital expenditures, working capital, and debt obligations over the next twelve months based on current liquidity[178]. - Long-term debt obligations total $2,529 million, with $200 million due in 2025 and $1,191 million due after 2029[188]. Regulatory and Compliance - The company is subject to substantial government regulation regarding fuel economy and greenhouse gas emissions, which could impact financial performance[59]. - The company is subject to environmental laws and regulations, and compliance costs may increase, potentially impacting financial performance[76]. - The cost of environmental compliance did not have a material adverse effect on earnings or competitive position in 2024[42]. Workforce and Talent Management - The company employed approximately 39,600 people across 30 countries as of December 31, 2024[34]. - The company’s ability to attract and retain talent is critical for developing competitive products in a rapidly changing technological landscape[90]. Risks and Challenges - The company faces volatility in commodity, labor, transportation, and energy costs, which have pressured profit margins[66]. - A significant portion of the annual cost of sales is driven by the purchase of goods and services, with a dependency on single sources for some components, increasing supply chain risk[67]. - The company may experience production delays if critical components are in short supply, adversely affecting sales and profitability[68]. - Warranty costs are estimated and accrued at the time of sale, requiring significant judgment regarding potential warranty exposure[213].

2024 Fourth-Quarter & Full-Year Earnings Conference Call February 20, 2025 Value Others | Inspire Innovation | Grow Responsibly | Win Together Safe Harbor Statement Certain statements and projections contained in this presentation are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain as ...

Financial Data and Key Metrics Changes - For the full year, sales decreased by nearly $300 million, reflecting softness in key areas, particularly in EV and off-highway markets [7][21] - Adjusted EBITDA for the fourth quarter was $186 million, with a profit margin of 8%, representing a 170 basis point improvement year-over-year [22] - Full year adjusted EBITDA was $885 million, $40 million higher than the previous year, with a profit margin of 8.6%, a 60 basis point improvement [23] - Free cash flow improved from a slightly negative position in 2023 to $70 million in 2024, with expectations to triple in 2025 [10][34] Business Line Data and Key Metrics Changes - Organic sales were $135 million lower in Q4 due to lower OEM production of heavy vehicles, while adjusted EBITDA on organic sales was $33 million higher due to improved cost efficiencies [27] - The cost-saving program contributed $10 million to adjusted EBITDA in Q4, with similar contributions expected for the full year [28][30] - The company anticipates a decline in organic sales of approximately $285 million for 2025, driven by lower demand across all end markets [37] Market Data and Key Metrics Changes - The light vehicle market is expected to remain flat year-over-year, consistent with other suppliers' expectations [16] - Commercial vehicle markets are anticipated to stabilize towards the end of the year, with beneficial impacts expected from pre-buys associated with 2026 emissions legislation [17] - The backlog decreased to $650 million, down about $300 million from the previous year, primarily due to lower volumes on existing programs [19][20] Company Strategy and Development Direction - The company is focused on completing the off-highway divestiture, with expectations to announce a transaction in early Q2 [10][11] - A commitment to achieving adjusted EBITDA margins of 10% in 2025 and pushing towards double digits in 2026 is emphasized [14] - The company is taking a more measured approach to EV investments, reducing capital expenditure intensity moving forward [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while the market is showing some weakness, early signs indicate that conditions may be better than previously feared [18] - The company expects to see a recovery in the second half of the year, with improved demand as inventories normalize [42] - Management expressed confidence in the execution of the $300 million cost reduction program, which is expected to significantly enhance profitability [120] Other Important Information - The company is targeting a net leverage of around one times through the cycle, aiming for a conservative balance sheet [15] - The impact of foreign currency translation was noted as a headwind, with expectations of approximately $195 million in sales impact for 2025 [38] Q&A Session Summary Question: Update on off-highway divestiture timeline - Management confirmed a robust process with strong interest and expects to sign a transaction in early Q2 [46] Question: Clarification on 2025 guidance and backlog segmentation - The light vehicle outlook is based on specific programs rather than overall market trends, with the majority of backlog in light vehicle driveline parts [49][50] Question: Tax guidance and valuation allowances - Management explained that the volatility in EPS is due to changes in income mix and valuation allowances, with expectations for normalization post-divestiture [54][58] Question: Commercial vehicle market turnaround - Management indicated that improvements in the commercial vehicle sector are expected to begin in Q1, with significant cost savings anticipated [71] Question: Impact of tariffs on pricing strategy - The company intends to pass through any tariff impacts to customers and has formally notified them of this strategy [87][116] Question: Backlog composition and future activity - Management clarified that backlog calculations do not include additional vehicle volume on current programs, focusing instead on new variants [111]

Dana (DAN) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 150%. A quarter ago, it was expected that this automotive equipment supplier would post earnings of $0.25 per share when it actually produced earnings of $0.12, delivering a surprise of -52%.Over the last four quarters, the compan ...

Sales Performance and Guidance - Preliminary sales for 2024 were approximately $10.3 billion, in line with prior guidance, compared to $10.6 billion in 2023, driven by weakening demand for electric vehicles, commercial trucks, and off-highway equipment[2] - 2025 sales guidance is projected between $9.525 billion and $10.025 billion, with adjusted EBITDA expected to be $925 million to $1,025 million, implying a margin of approximately 10.0% at the midpoint[8] - Sales for 2025 are projected to be between $6,950M and $7,350M for New Dana and between $2,575M and $2,675M for Off-Highway[33] - Lower end-market demand in Off-Highway and currency translation are expected to negatively impact sales and profit[39] Adjusted EBITDA and Margins - Adjusted EBITDA for 2024 was approximately $885 million, or 8.6% of sales, compared to $845 million, or 8.0% of sales in 2023, reflecting efficiency improvements and cost-savings actions[3] - Adjusted EBITDA margin is projected to improve to between 9.5% and 10.5% in 2026, driven by cost reduction actions[6] - Adjusted EBITDA for 2025 is expected to range from $565M to $635M for New Dana and from $360M to $390M for Off-Highway[33] - Adjusted EBITDA margin for 2025 is projected to be between 8.1% and 8.6% for New Dana and between 14.0% and 14.6% for Off-Highway[33] - Adjusted EBITDA for 2025 is preliminarily estimated at $975M, with a margin of 10.0%[38] Free Cash Flow and Capital Expenditures - Free cash flow for 2024 was approximately $70 million, compared to a use of $25 million in 2023, impacted by higher-than-expected working capital requirements in Q4[3] - Free cash flow for 2025 is expected to be between $175 million and $275 million, driven by improved working capital efficiency and reduced capital expenditures[6][8] - Free Cash Flow for 2025 is anticipated to be approximately $225M, driven by higher profit and lower capital spending[41] - 2025 net capital spend is expected to be around $325M[35] - 2025 Free Cash Flow improvement is attributed to higher profit, improved working capital efficiency, and lower capital investment requirements[40] - Dana expects free cash flow to be approximately 4% of sales over the business cycle, with a target of maintaining net leverage at 1x[6] Cost Reduction and Efficiency Improvements - Dana increased its total cost reduction target to $300 million through 2026, with $175 million in savings expected in 2025[2][6] - Efficiency improvements and cost savings actions are driving higher profit and margins compared to the previous year[35] - Lower commodity costs are expected to result in lower sales recoveries, but the profit benefit of lower input costs is more than offset by cost true-ups with customers[39] Organizational and Strategic Changes - Dana is simplifying its organizational structure into two business segments: Light Vehicle Systems and Commercial Vehicle Systems, effective Q1 2025[5] - The company is pursuing the sale of its Off-Highway business, which is expected to unlock substantial value for shareholders and strengthen the balance sheet[5]

Full-year Results Sales of $10.3 billion, a decrease of $271 million compared to last year Net loss of $57 million, compared with a net income of $38 million in 2023 Adjusted net income of $136 million compared with adjusted net income of $122 million last year Adjusted EBITDA of $885 million, an increase of $40 million over last year Adjusted EBITDA margin of 8.6 percent, a 60-basis-point improvement compared with 2023 Free cash flow of $70 million, an increase of $95 million over 2023 Three-year new busin ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

The broader market has been stuck in a holding pattern over the past couple of months, with many of the usual leaders consolidating after strong gains. While these stocks remain compelling long-term investments, they may need more time to rest before resuming their uptrends.Meanwhile, a few under-the-radar stocks are bucking the trend and gaining momentum despite the market’s relative quiet period. I’ve identified three top-ranked names—Innodata ((INOD), Dana ((DAN), and National Fuel Gas Company ((NFG)—tha ...

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:Fulton Financial Corporation (FULT) : This consumer and commercial banking products and services company has seen the Zacks Consensus Estimate for its current year earnings increasing 6.1% over the last 60 days.First Bancorp (FBNC) : This bank holding company for First Bank has seen the Zacks Consensus Estimate for its next year earnings increasing 6.8% over the last 60 days.Dana Incorporated (DAN) : This company that provides power-con ...