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Sep 24, 2022
Dorman Q3 2022 Earnings Report
Dorman Products reported a net sales increase of 19% and EPS decreased by 7% compared to the prior year period.
Key Takeaways
Dorman Products, Inc. announced its financial results for the third quarter ended September 24, 2022. Net sales increased by 19% compared to the third quarter of 2021, driven by favorable industry dynamics, new product launches, the addition of Dayton Parts, and price increases. Diluted earnings per share decreased by 7% compared to the prior year quarter. The company also completed the acquisition of SuperATV, expanding into the powersports aftermarket.
Net sales increased by 19% to $413.5 million compared to $348.4 million in the prior year period.
Diluted earnings per share decreased by 7% to $0.97 compared to $1.04 in the prior year period.
Adjusted diluted EPS decreased by 1% to $1.17 compared to $1.18 in the prior year period.
The company completed the acquisition of SuperATV, expanding into the powersports aftermarket.
Dorman
Dorman
Forward Guidance
The Company is updating its full-year 2022 guidance, detailed in the table below, which includes the impact of the SuperATV acquisition for the remainder of the year, which we expect will add approximately $50 million in net sales and low-single-digit cents per share in Adjusted Diluted EPS*.
Positive Outlook
- Strong consumer demand for current products
- Pipeline of innovative new products
- Easing of inflationary pressures
- Easing of ocean freight costs
- Easing of commodity pricing
Challenges Ahead
- Significantly higher factoring expenses due to continued and aggressive actions by the Federal Reserve to raise interest rates
- Higher costs in the third quarter than anticipated
- Negative impact on fourth quarter results
- Rising interest rates present a challenge
- Continued timing lags in offsetting these higher expenses