DORMAN PRODUCTS Reports 15.1% Revenue Increase, 13.5% Net Income Decrease in Q2 FY2023

☀️Earnings Overview

On August 1 2023, DORMAN PRODUCTS ($NASDAQ:DORM) reported their FY2023 Q2 earnings results, indicating a total revenue of USD 480.6 million, a 15.1% year-over-year rise, and net income of USD 32.8 million, a 13.5% year-over-year drop.

Analysis

GoodWhale conducted an analysis of DORMAN PRODUCTS‘s wellbeing and classified the company as a ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. DORMAN PRODUCTS is strong in asset, growth, and profitability, and weak in dividends. What type of investors may interested in such a company? We can determine that DORMAN PRODUCTS has a high health score of 8/10 with regard to its cashflows and debt, meaning that the company is capable to sustain future operations in times of crisis. Therefore, potential investors who are looking for a long-term investment opportunity with a stable growth rate may find DORMAN PRODUCTS attractive. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Dorman Products. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Dorman Products. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Dorman Products. More…

Key Ratios Snapshot

Some of the financial key ratios for Dorman Products are shown below. More…

Peers

The company competes with Hwaseung R&A Co Ltd, Shanghai Baolong Automotive Corp, Inter Cars SA. Dorman Products Inc offers a wide range of products including engine parts, suspension parts, electrical parts, and more. The company has a strong focus on quality and customer service.

– Hwaseung R&A Co Ltd ($KOSE:378850)

Hwaseung R&A Co Ltd is a South Korean conglomerate. It is the holding company of the Hwaseung Group, which consists of businesses in the auto parts, chemicals, and electronics industries. The company has a market cap of 71.31B as of 2022, and a return on equity of 8.21%. Hwaseung R&A Co Ltd is a publicly traded company on the Korea Exchange (KRX).

– Shanghai Baolong Automotive Corp ($SHSE:603197)

Shanghai Baolong Automotive Corp is a publicly traded company with a market capitalization of $9.01 billion as of 2022. The company has a return on equity of 10.38%. Shanghai Baolong Automotive Corp is engaged in the manufacture and sale of automotive parts and components. The company’s products include engine parts, transmission parts, suspension parts, and electrical parts. Shanghai Baolong Automotive Corp has a strong presence in the Chinese automotive market and is expanding its operations into other markets, such as the United States.

– Inter Cars SA ($LTS:0LUR)

Inter Cars SA is a Polish automotive parts and accessories retailer and distributor. The company operates through three segments: Retail, Wholesale, and E-commerce. It offers a range of products, including car parts, tools, equipment, and chemicals. As of 2022, Inter Cars SA had a market cap of 5.24 billion Polish zlotys and a return on equity of 18.9%.

Summary

DORMAN PRODUCTS posted strong earnings for their second fiscal quarter in 2023, with total revenue increasing 15.1% year-over-year to USD 480.6 million. However, net income declined 13.5% year-over-year to USD 32.8 million. Investors should review key metrics such as sales growth, margin performance, and cash flow in evaluating DORMAN PRODUCTS’ potential as an investment. Analysts may also wish to examine management’s strategy for continued growth, cost control, and capital allocation as factors in their decision-making process.