Dorman Products (NASDAQ:DORM) Shares Gap Up on Strong Earnings

Dorman Products, Inc. (NASDAQ:DORM) shares gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $127.68, but opened at $142.11. Dorman Products shares last traded at $153.8670, with a volume of 190,285 shares traded.

The auto parts company reported $3.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.89 by $1.19. Dorman Products had a return on equity of 17.73% and a net margin of 8.84%.The business had revenue of $544.60 million during the quarter, compared to the consensus estimate of $582.24 million. During the same period in the previous year, the company posted $2.06 EPS. The business’s quarterly revenue was up .7% compared to the same quarter last year. Dorman Products has set its FY 2026 guidance at 8.500-8.800 EPS.

Dorman Products News Summary

Here are the key news stories impacting Dorman Products this week:

• Positive Sentiment: Adjusted earnings and guidance were strong. Second-quarter EPS was $3.08, well above the roughly $1.78-$1.89 analyst expectations and up from $2.06 a year earlier. Dorman also set fiscal 2026 EPS guidance at $8.50-$8.80, above the consensus estimate of $8.27. Dorman Products Q2 Earnings Top Estimates
• Positive Sentiment: Profitability and cash generation improved. Net income rose to $87.8 million from $58.7 million, gross margin was 46.1%, operating cash flow reached $152.6 million, and the company repurchased $47 million of stock. Dorman Products Reports Second Quarter Results
• Neutral Sentiment: Industry demand remains supportive. Rising repair costs, an aging U.S. vehicle fleet and increasing EV repair complexity could support long-term demand for replacement parts, although tariffs may continue to pressure margins. Auto Replacement Stocks to Watch
• Negative Sentiment: Revenue missed expectations. Sales increased just 0.7% year over year to $544.6 million, below the $582.2 million consensus estimate. Investors may view the large earnings beat as less compelling because it was partly driven by IEEPA tariff cost recovery rather than broad-based sales growth. Dorman Products Second Quarter Results

Analyst Upgrades and Downgrades

DORM has been the topic of several recent research reports. Barrington Research reiterated an “outperform” rating and issued a $150.00 price target on shares of Dorman Products in a research report on Monday, May 4th. Zacks Research raised shares of Dorman Products from a “strong sell” rating to a “hold” rating in a research report on Friday, May 15th. Wells Fargo & Company upped their price objective on Dorman Products from $140.00 to $155.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 21st. Finally, Weiss Ratings raised Dorman Products from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, July 10th. Six equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $159.50.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Coldstream Capital Management Inc. boosted its stake in shares of Dorman Products by 3.7% during the third quarter. Coldstream Capital Management Inc. now owns 2,696 shares of the auto parts company’s stock valued at $420,000 after purchasing an additional 97 shares during the period. Corient Private Wealth LLC increased its stake in Dorman Products by 2.6% in the 2nd quarter. Corient Private Wealth LLC now owns 3,842 shares of the auto parts company’s stock worth $471,000 after buying an additional 99 shares during the period. Mackenzie Financial Corp boosted its position in Dorman Products by 6.4% in the 3rd quarter. Mackenzie Financial Corp now owns 1,740 shares of the auto parts company’s stock valued at $271,000 after buying an additional 105 shares during the period. Keybank National Association OH grew its stake in Dorman Products by 1.5% in the 1st quarter. Keybank National Association OH now owns 7,101 shares of the auto parts company’s stock worth $741,000 after acquiring an additional 106 shares in the last quarter. Finally, Huntington National Bank increased its position in shares of Dorman Products by 12.8% during the fourth quarter. Huntington National Bank now owns 981 shares of the auto parts company’s stock worth $121,000 after acquiring an additional 111 shares during the period. Hedge funds and other institutional investors own 84.70% of the company’s stock.

Dorman Products Stock Up 19.2%

The stock has a market cap of $4.55 billion, a PE ratio of 24.50 and a beta of 0.97. The business has a fifty day moving average of $132.06 and a 200-day moving average of $121.64. The company has a debt-to-equity ratio of 0.27, a current ratio of 3.29 and a quick ratio of 1.28.

About Dorman Products

Dorman Products, Inc is a leading independent global supplier of automotive aftermarket parts and hardware. Headquartered in Colmar, Pennsylvania, the company specializes in the design, manufacture and distribution of replacement components for passenger cars, light trucks and commercial vehicles. Dorman’s offerings span both mechanical and electrical systems, providing solutions that help repair shops and retailers address wear-out and collision-related failures on domestic and import vehicles.

The company’s extensive product portfolio includes steering and suspension components, brake system parts, engine management and cooling products, exterior and body hardware, and an array of fasteners, clips and brackets.