The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Dorman Products beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins expanded, net margins increased.
Dorman Products booked revenue of $139.1 million. The three analysts polled by S&P Capital IQ expected to see sales of $134.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $122.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.87. The three earnings estimates compiled by S&P Capital IQ averaged $0.76 per share on the same basis. GAAP EPS of $0.92 for Q4 were 35% higher than the prior-year quarter's $0.68 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.1%, 100 basis points worse than the prior-year quarter. Operating margin was 17.4%, 60 basis points better than the prior-year quarter. Net margin was 12.0%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $140.2 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $585.8 million. The average EPS estimate is $3.49.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 141 members out of 151 rating the stock outperform, and 10 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Dorman Products a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dorman Products is outperform, with an average price target of $44.33.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy