The EPS miss and margin erosion from tariffs are concerning. Watch for tariff escalation or relief; guidance assumes current tariffs. Any further tariff changes could pressure margins more. The share repurchase program provides some support but does not offset fundamental weakness.
Price Chart
Executive Summary
Dorman Products reported Q1 2026 GAAP EPS of $1.43, missing consensus of $1.56 by 8.3%, while revenue of $528.8M slightly beat $524.5M. Gross margin contracted 490 bps to 36.0% due to higher tariff costs, and net income fell 24% YoY. The company reaffirmed full-year guidance, but the earnings miss and margin compression overshadow the 4.2% revenue growth.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $1.43 vs consensus $1.56 (miss of 8.3%)
- Revenue of $528.8M vs consensus $524.5M (in-line with 0.8% beat)
- Net income of $43.6M down 24% YoY from $57.5M
- Gross margin fell 490 bps to 36.0% from 40.9% due to tariffs
- Operating cash flow of $43.8M down 14.6% from $51.2M
- Repurchased $51M of shares at avg $118/share
- Full-year 2026 guidance reaffirmed: GAAP EPS $7.57-$7.97, revenue growth 7-9%
Financial Impact
Net income decreased $13.9M YoY; gross margin compressed 490 bps; EPS declined 24%
Risk Factors
- Further tariff increases could deepen margin contraction
- Geopolitical uncertainty may impact supply chain and costs
- Adjusted EPS guidance of $8.10-$8.50 implies continued profitability pressure
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3287108 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 3, 2026 8w ago | Press Release | $147.80 $127.18 | ▼ −13.95% | ▼ −12.71% | $125.25 (−15.26%) |
May 4, 2026 21w ago | Press Release | $119.52 $125.83 | ▼ −5.28% | ▼ −0.33% | $125.25 (−4.79%) |
Apr 13, 2026 24w ago | Press Release | $110.12 $121.01 | ▲ +9.89% | ▲ +3.59% | $125.25 (+13.74%) |
Feb 25, 2026 31w ago | 8-K | $114.50 $106.95 | ▼ −6.59% | ▼ −1.36% | $125.25 (+9.39%) |
US Market Status
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