Dorman Products Posts Mixed Q3 Earnings, Notes Margin Pressure, Lifts FY21 Sales Outlook

Dorman Products Posts Mixed Q3 Earnings, Notes Margin Pressure, Lifts FY21 Sales Outlook
  • Dorman Products Inc DORM reported third-quarter FY21 sales growth of 15.9% year-on-year, to $348.43 million, beating the analyst consensus of $329.89 million.
  • Gross profit rose 8.4% Y/Y to $116.9 million, and the margin contracted 240 basis points Y/Y to 33.5%.
  • The operating margin contracted 220 basis points to 12.7%, and operating income for the quarter fell 1.3% to $44.19 million.
  • Adjusted EPS of $1.18 missed the analyst consensus of $1.22.
  • The company said it experienced broad-based inflationary impacts due to global transportation and logistics constraints.
  • Dorman Products held $57.3 million in cash and equivalents as of September 25, 2021. Cash provided by operating activities totaled $38.5 million for the three months ended September 25, 2021.
  • Outlook: Dorman Products raised FY21 sales guidance to $1.30 billion - $1.33 billion (prior view $1.263 billion - $1.30 billion) versus the consensus of $1.27 billion.
  • The company expects FY21 adjusted EPS of $4.56 - $4.80, unchanged from the prior outlook, against the consensus of $4.67.
  • Price action: DORM shares closed lower by 1.77% at $102.32 on Friday.

Posted In: BriefsEarningsNewsGuidance