Why Dana Holding's Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Dana Holding (NYS: DAN) jumped 15% today after the company released earnings.
So what: Revenue grew slightly from a year ago to $1.95 billion, but fell short of the $2 billion number analysts expected. But that was made up for on the bottom line where the company reported earnings of $0.56 per share, $0.04 ahead of estimates.
Now what: The real driver today was the company's full-year earnings per share guidance of $1.94 to $2.01, which was at the top end of what analysts had expected. The top line might now be what analysts expected, but the company's focus on efficiency is improving the bottom line and that is what investors are cheering today. I'd like to see more growth, but with the stock trading at 6.5 times 2012 estimates, I think shares can rise further from here.
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The article Why Dana Holding's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.