Dorman Products Reports Strong Q3 Financial Results and Announces New Share Repurchase Program

Dorman Products

COLMAR, PADorman Products, Inc. (NASDAQ: DORM) released its financial results for the third quarter ending September 28, 2024, showcasing a robust performance highlighted by increased net sales and earnings per share. The company recorded net sales of $503.8 million, marking a 3.2% rise from $488.2 million in the previous year. Diluted earnings per share surged by 41% to $1.80, with adjusted diluted EPS at $1.96, up 40%.

CEO Kevin Olsen credited the company’s innovation strategy and strong execution across its operations for these results. “We delivered strong performance in the third quarter with earnings growth exceeding our expectations,” he said. The Light Duty segment led the sales growth, while the Heavy Duty and Specialty Vehicle segments showed resilience despite market challenges.

Dorman has updated its full-year 2024 guidance, now expecting net sales growth between 3.5% and 4.5%. The company has also adjusted its EPS guidance, forecasting diluted EPS to range from $6.15 to $6.25 and adjusted diluted EPS from $6.85 to $6.95.

In addition to its financial performance, Dorman announced a new share repurchase program starting January 1, 2025. This authorization allows for the repurchase of up to $500 million of outstanding common stock by the end of 2027. During the third quarter, Dorman repurchased 273,653 shares for $26.7 million under its existing program, with $134.6 million remaining for further repurchases until the end of this year.

Olsen emphasized the company’s commitment to innovation and operational excellence, noting, “Our performance is a testament to the hard work and dedication of our Contributors, the strength of our customer relationships, and our unwavering commitment to driving innovation for our end users.”

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The company’s strategic focus on enhancing workflows and market speed continues to bolster its profitability and market position, setting a solid foundation for the remainder of 2024 and beyond.

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