Dorman Q3 Adjusted EPS Down 21%; 2026 Sales Growth Guidance Narrowed to 2%-3%
DORM sits 27% above its 52-week low of $98.445.
Summary
Dorman beat Q3 adjusted EPS estimates but posted a 21% year-over-year decline and cut its 2026 sales growth outlook to 2%-3% from 3%-5%, with gross margin down 500 bps.
Key Events · Earnings and Guidance · DORM
-
Q3 Adjusted EPS Beats but Falls 21%
Adjusted diluted EPS was $2.08 versus $2.62 a year ago, a 21% decline, though it topped the $2.00 IBES estimate. GAAP diluted EPS was $1.98, down 20% from $2.48.
-
Gross Margin Contracts 500 bps
Gross profit fell to $221.6 million, or 39.4% of net sales, from $241.4 million, or 44.4%, as last year's Q3 benefited from tariff-related pricing that did not repeat. Light Duty segment profit margin dropped 520 bps to 18.5%.
-
2026 Sales Growth Guidance Narrowed
Full-year net sales growth is now guided to 2%-3%, down from the prior 3%-5% range. Diluted EPS guidance narrowed to $7.95-$8.15 and adjusted diluted EPS to $8.50-$8.70.
-
Record $112M Year-to-Date Buybacks
The company repurchased $15 million of stock in Q3, bringing year-to-date repurchases to a company record $112 million, funded by $64.6 million of quarterly operating cash flow.
Analysis · DORM · Manufacturing
Dorman beat the Q3 adjusted EPS estimate ($2.08 vs $2.00), but the quarter's quality was weak: gross margin fell to 39.4% from 44.4% and adjusted EPS dropped 21% year-over-year, because last year's third quarter captured tariff-related pricing that did not repeat. Management responded by narrowing full-year sales growth to 2%-3% from 3%-5% and trimming the EPS ranges, citing additional pricing actions expected in Q4. The offset is cash: $64.6 million of operating cash flow in the quarter and a record $112 million of year-to-date buybacks, with cash up to $167 million from $49 million at year-end. Whether the Q4 pricing actions restore margin or the tariff comparison keeps compressing earnings will drive the stock's reaction.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, DORM was trading at $124.74 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $3.7B. The 52-week trading range was $98.45 to $164.00. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.