Dorman Products Reports Mixed Q3 Results; Cuts FY22 EPS Guidance

Dorman Products Inc DORM reported third-quarter FY22 sales growth of 19% year-on-year to $413.5 million, beating the consensus of $407.54 million.
Gross profit rose 12.9% Y/Y to $131.9 million, and the margin contracted 160 basis points Y/Y to 31.9%.
The operating margin contracted 250 basis points to 10.2%, and operating income for the quarter fell 4.7% to $42.1 million.
Adjusted EPS of $1.17 missed the analyst consensus of $1.21.
Selling, general and administrative expenses rose 23.5% Y/Y to $89.8 million.
Dorman Products held $35.4 million in cash and equivalents as of September 24, 2022.
"We have incurred significantly higher factoring expenses due to continued and aggressive actions by the Federal Reserve to raise interest rates. This has led to higher costs in the third quarter than we anticipated and will negatively impact fourth quarter results as well," said CEO Kevin Olsen.
Outlook: Dorman Products sees FY22 sales of $1.65 billion - $1.69 billion (prior view $1.60 billion - $1.64 billion), against the Street view of $1.66 billion.
The company lowered the FY22 adjusted EPS forecast to $4.70 - $4.90 from the previous outlook of $5.00 - $5.20, against the consensus of $5.12.
Price Action: DORM shares closed higher by 0.49% at $86.98 on Friday.

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