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

Key Points

• Dorman Products shares surged after the company reported quarterly EPS of $3.08, well above the $1.89 consensus estimate and up from $2.06 a year earlier.
• The company issued fiscal 2026 EPS guidance of $8.50–$8.80, exceeding the $8.27 analyst consensus, while net income and operating cash flow also improved.
• Despite the earnings beat, revenue rose only 0.7% to $544.6 million and missed estimates of $582.2 million, with tariff-related cost recovery potentially contributing to the strong profit result.

Dorman Products, Inc. (NASDAQ:DORM - Get Free Report) 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 changing hands.

The auto parts company reported $3.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.89 by $1.19. Dorman Products had a net margin of 8.84% and a return on equity of 17.73%. The company had revenue of $544.60 million during the quarter, compared to analyst estimates of $582.24 million. During the same period last year, the business earned $2.06 EPS. Dorman Products'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.

Trending Headlines about Dorman Products

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

Wall Street Analyst Weigh In

A number of brokerages have recently commented on DORM. Zacks Research raised Dorman Products from a "strong sell" rating to a "hold" rating in a research report on Friday, May 15th. Wells Fargo & Company lifted their price objective on Dorman Products from $140.00 to $155.00 and gave the company an "overweight" rating in a research note on Tuesday, July 21st. Barrington Research reissued an "outperform" rating and issued a $150.00 target price on shares of Dorman Products in a report on Monday, May 4th. Finally, Weiss Ratings raised Dorman Products from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, July 10th. Six investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $159.50.

Hedge Funds Weigh In On Dorman Products

Hedge funds have recently bought and sold shares of the business. EverSource Wealth Advisors LLC grew its stake in shares of Dorman Products by 594.1% in the second quarter. EverSource Wealth Advisors LLC now owns 236 shares of the auto parts company's stock worth $29,000 after acquiring an additional 202 shares during the period. Miller Capital Partners Inc. purchased a new stake in Dorman Products in the fourth quarter worth approximately $37,000. Sankala Group LLC purchased a new stake in Dorman Products in the fourth quarter worth approximately $47,000. Kestra Advisory Services LLC purchased a new stake in Dorman Products during the 4th quarter valued at $48,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in Dorman Products during the 4th quarter valued at $60,000. Hedge funds and other institutional investors own 84.70% of the company's stock.

Dorman Products Price Performance

The stock has a market capitalization of $4.55 billion, a P/E ratio of 24.50 and a beta of 0.97. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.28 and a current ratio of 3.29. The firm has a fifty day moving average price of $132.06 and a two-hundred day moving average price of $121.64.

Dorman Products Company Profile

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.

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