Why Dorman Products Stock Dropped Today
Shares of Dorman Products (NASDAQ: DORM) were down 14.3% as of 3 p.m. ET Tuesday after the automotive products company announced weaker-than-expected quarterly earnings and lowered its full-year outlook.
Dorman's third-quarter revenue grew 18% year over year, to $488.2 million, translating to a 20% increase in adjusted non-GAAP (generally accepted accounting principles) earnings per share to $1.40. Analysts, on average, were expecting adjusted earnings of $1.59 per share on roughly the same revenue.
Digging deeper into Dorman's quarter, growth was largely driven by the company's purchase of power sports aftermarket leader SuperATV late last year; revenue growth excluding acquisitions was closer to 6%. Management noted the integration of SuperATV "continues to go well and is substantially complete."
Source Fool.com
