The auto supplier sector rallied on Friday after a strong earnings report from Dana (NYSE:DAN) boosted sentiment on the industry backdrop.
Dana (DAN) topped estimates with a 6.5% increase in revenue to $2.64B and brought in EPS at $0.25 vs. $0.08 consensus. Guidance from the company also came in very close to expectations. Dana Chairman James Kansickas pointed to healthy customer demand in all of the company's end markets, as well as new and replacement business rolling-on.
Bank of America reminded that given the extreme volatility in certain links of the automotive value chain, investors should be cognizant that the auto-related stocks are sensitive to headlines and swings in expectations, especially in the short term.
Dana (DAN) rose 5.55% in early afternoon trading on Friday. Other advancers included Cooper-Standard (CPS) +8.82%, Allison Transmission (ALSN) +7.80%, Gentex (GNTX) +4.61%, Motorcar Parts of America (MPAA) +3.78%, and American Axle & Manufacturing (AXL) +3.39%.