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Jun 25, 2022
Dorman Q2 2022 Earnings Report
Dorman's Q2 2022 financial performance demonstrated strong growth, driven by record net sales and strategic initiatives.
Key Takeaways
Dorman Products, Inc. reported a strong second quarter in 2022, marked by record net sales of $417.4 million, a 34% increase compared to the prior year. Diluted earnings per share rose by 21% to $1.20, and adjusted diluted EPS increased by 17% to $1.29. The company is adjusting its fiscal year 2022 guidance due to higher interest rates, while maintaining net sales growth expectations.
Net sales reached a record $417.4 million, up 34% from the previous year, driven by favorable industry dynamics and new product penetration.
Diluted earnings per share increased by 21% to $1.20, while adjusted diluted EPS rose by 17% to $1.29.
Gross profit was $141.5 million, representing 33.9% of net sales, compared to 35.5% in the prior year.
The company is adjusting its full-year 2022 guidance to reflect the impact of higher interest rates, projecting diluted EPS of $4.50 to $4.70 and adjusted diluted EPS of $5.00 to $5.20.
Forward Guidance
The company is adjusting its full-year 2022 guidance, expecting customer demand to remain strong, but is lowering EPS guidance due to the impact of significantly higher interest rates.
Positive Outlook
- Customer demand is expected to remain strong through the balance of the year.
- Net sales growth is expected to align with prior expectations.
- The company expects to execute further price increases and supply chain cost savings actions to protect operating profit dollars.
- The company's balance sheet and liquidity remain strong.
- The company is well-positioned to execute on its strategic priorities.
Challenges Ahead
- Significantly higher interest rates are expected to impact customer accounts receivable factoring programs and borrowings under the revolving credit facility.
- The company faces a challenging macroeconomic environment given the dynamics of inflation.
- The company faces a challenging macroeconomic environment given the dynamics of rising interest rates.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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