Dorman Products (DORM) came in with quarterly earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.41 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 11.35%. A quarter ago, it was expected that this distributor of parts to auto retailers would post earnings of $1.60 per share when it actually produced earnings of $1.40, delivering a surprise of -12.50%.
Over the past four quarters, the company has topped consensus EPS estimates just once.
Dorman Products
The sustainability of the stock’s immediate price movement based on the recently released numbers and future earnings expectations will largely depend on management’s commentary on the earnings call.
Dorman Products shares have lost about 0.8% since the start of the year versus the S&P 500’s gain of 6.7%.
What’s Next for Dorman Products?
While Dorman Products has underperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the next quarter(s), but also how these expectations have changed recently.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions on their own or rely on a proven valuation tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this earnings release, the rating revisions trend for Dorman Products: Unfavorable. While the size and direction of rating revisions could change following the company’s recently released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the stock is expected to underperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates change for the upcoming quarters and current fiscal year in the coming days. The current consensus EPS estimate is $0.85 on $483.86 million in revenue for the upcoming quarter and $5.21 on $2.04 billion in revenue for the current fiscal year.
Investors should consider the fact that the outlook for the industry can have a material impact on the stock’s performance as well. According to the Zacks Industry Rank, Automotive – Replacement Parts is currently in the bottom 5% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Fisker Inc. (FSR), another stock in the broader Zacks Auto-Tires-Trucks sector, has yet to report results for the quarter ended December 2023. The results are expected to be released on February 29.
This company expects a quarterly loss of $0.20 per share in its next report, which represents a year-over-year change of +63%. The consensus EPS estimate for the quarter remained unchanged over the last 30 days.
The income of Fisker Inc. are expected to be $ 332.66 million, more than 107208.1% from the previous year.
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Dorman Products, Inc. (DORM): Free Analysis Report
Fisker Inc. (FSR): Free Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.