• Sun. Dec 4th, 2022

Dorman Products Reports Mixed Q2 Earnings, Cuts FY22 EPS Outlook; Boosts Buyback

ByShivani Kumaresan

Jul 25, 2022
Dorman Products Reports Mixed Q2 Earnings, Cuts FY22 EPS Outlook; Boosts Buyback

  • Dorman Products Inc DORM reported second-quarter FY22 sales growth of 34% year-on-year, to $417.42 million, beating the consensus of $401.43 million.
  • Gross profit rose 28.5% Y/Y to $141.5 million, and the margin contracted 160 basis points Y/Y to 33.9%.
  • The operating margin contracted 120 basis points to 11.9%, and operating income for the quarter rose 21.8% to $49.5 million.
  • Adjusted EPS of $1.29 missed the analyst consensus of $1.32.
  • Dorman Products held $51.9 million in cash and equivalents as of June 25, 2022. Cash provided by operating activities totaled $14.2 million for the three months ended June 25, 2022.
  • The company’s board authorized a $100 million increase and a two-year extension to the share repurchase program. The company had $129.5 million remaining under its prior share repurchase authorization.
  • “While the demand environment remained strong throughout the quarter, we still face a challenging macroeconomic environment given the dynamics of inflation, rising interest rates, tight labor conditions, and global supply chain disruptions,” said CEO Kevin Olsen.
  • Outlook: Dorman Products reaffirmed its FY22 guidance with net sales growth of 19% – 22% to $1.6 billion – $1.64 billion (consensus $1.65 billion).
  • The company cut the FY22 adjusted EPS outlook to $5.00 – $5.20 (previously $5.35 – $5.55), against the consensus of $5.53.
  • Price Action: DORM shares closed higher by 0.03% at $116.76 on Friday.



Image and article originally from www.benzinga.com. Read the original article here.