Core Points - Dorman Products, Inc. will report its financial results for Q4 and the full year ended December 31, 2024, after the Nasdaq market closes on February 26, 2025 [1] - A conference call and webcast to discuss these financial results is scheduled for February 27, 2025, at 8 a.m. ET [2] Company Overview - Dorman Products has been providing aftermarket replacement products for over 100 years, aimed at saving time and money for professionals and vehicle owners [3] - The company is a global organization with a diverse catalog of products for various types of vehicles, including cars, trucks, and specialty vehicles [4]

Core Insights - Dorman Products, Inc. has appointed Tayfun Uner as President of Light Duty, a newly-created role aimed at driving strategic growth and overseeing the largest business segment [1][2] - Uner brings extensive experience from consumer goods, having previously served as Senior Vice President at Newell Brands and held strategic positions at McKinsey & Company, Procter & Gamble, and Carlsberg Breweries [2] - The appointment is part of Dorman's effort to formalize leadership structures across its three business segments, enhancing operational efficiency and growth potential [2] Company Overview - Dorman Products has been providing innovative repair solutions for over 100 years, offering a wide range of aftermarket replacement products designed to save time and money for repair professionals and vehicle owners [3][4] - The company operates globally, with a diverse catalog of products that includes components for cars, trucks, and specialty vehicles, covering various aspects from chassis to complex electronics [4]

Industry Overview - The Zacks Automotive - Replacement Parts industry focuses on the production, marketing, and distribution of replacement components for the automotive aftermarket, including essential parts like engine, steering, and brakes [3] - The industry is less exposed to economic downturns as consumers prefer to repair older vehicles rather than purchase new ones, leading to consistent demand for replacement parts [3] Key Investing Themes - The average age of vehicles in the U.S. reached an all-time high of 12.6 years in 2024, driving demand for automotive replacement parts due to the need for more frequent repairs and maintenance [4] - The shift towards electrification, autonomy, and digitization in the automotive industry is creating new growth opportunities in the replacement parts market, requiring advanced components and skilled technicians [5] Industry Performance - The Zacks Automotive - Replacement Parts industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500, declining 17% over the past year while the sector and S&P 500 grew by 27% and 29%, respectively [9] - The industry is currently trading at an EV/EBITDA ratio of 8.8X, significantly lower than the S&P 500's 18.84X and the sector's 22.78X, indicating an attractive valuation [10] Company Highlights Dorman Products - Dorman Products is a key player in the aftermarket industry, focusing on replacement and upgrade parts, with a strong balance sheet and a debt-to-capitalization ratio of 28% [11] - The company has consistently surpassed earnings estimates, with an average surprise of 35%, and is expected to see year-over-year growth of 4% in sales and 9% in earnings for 2025 [12] Standard Motor Products - Standard Motor Products is a leading manufacturer of automotive replacement parts, with a focus on engine management and temperature control systems, and has expanded its geographic presence through the acquisition of Nissens [20] - The company has a long-term debt-to-capital ratio of 0.17, lower than the industry average, and has repurchased $10.4 million of shares in the first nine months of 2024 [20] - The Zacks Consensus Estimate for Standard Motor's 2025 sales and earnings implies year-over-year growth of 2.3% and 11.3%, respectively [21]

Industry Overview - The automotive replacement parts industry is experiencing growth driven by an aging vehicle fleet, with the average age of vehicles in the U.S. reaching 12.6 years in 2024, leading to increased demand for repairs and maintenance [8] - The industry's dynamics are shifting due to the electrification, autonomy, and digitization of vehicles, which require advanced components and skilled technicians, creating new growth opportunities [2] - Affordability issues are expected to persist, encouraging vehicle owners to opt for repairs over new purchases, further boosting demand for replacement parts [9] Market Performance - The Zacks Automotive Replacement Parts industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500, declining 17% over the past year while the sector and S&P 500 grew by 27% and 29% respectively [11] - The industry's current valuation, based on the EV/EBITDA ratio, is 8.8X, significantly lower than the S&P 500's 18.84X and the sector's 22.78X, indicating potential value opportunities [12] Key Players - Dorman Products is a key player in the aftermarket industry, focusing on replacement and upgrade parts, with a strong balance sheet and a debt-to-capitalization ratio of 28%, supported by share buybacks [21] - Standard Motor Products is a leading manufacturer of automotive replacement parts, with recent acquisitions aimed at expanding geographic presence and improving cost savings, currently holding a Zacks Rank 3 (Hold) [23][24]

Group 1 - Dorman Products (DORM) is currently outperforming its peers in the Auto-Tires-Trucks sector, with a year-to-date return of approximately 65.3% compared to the sector average of 6.8% [4] - The Zacks Rank for Dorman Products is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 12.3% increase in the full-year earnings estimate over the past three months [3][4] - Dorman Products belongs to the Automotive - Replacement Parts industry, which has an average loss of 17.2% this year, further highlighting DORM's strong performance [6] Group 2 - REE Automotive Ltd. (REE) has also shown strong performance in the Auto-Tires-Trucks sector, with a year-to-date return of 48.3% and a Zacks Rank of 2 (Buy) [5][7] - The Automotive - Original Equipment industry, which includes REE, has experienced a decline of 19.4% this year, contrasting with Dorman Products' positive performance [7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Dorman Products (DORM) - Dorman Products currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - DORM shares have increased by 11.21% over the past week, while the Zacks Automotive - Replacement Parts industry has declined by 1.21% during the same period [5] - Over the past month, DORM's price change is 20.68%, significantly outperforming the industry's 0.18% [5] - In the last quarter, DORM shares rose by 23.99%, and over the past year, they have gained 99.93%, compared to the S&P 500's increases of 15.2% and 38.09%, respectively [6] Trading Volume - DORM's average 20-day trading volume is 181,714 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for DORM have been revised upwards, increasing the consensus estimate from $6.15 to $6.90 [9] - For the next fiscal year, three estimates have also moved higher, with no downward revisions noted [9] Conclusion - Given the strong performance metrics and positive earnings outlook, Dorman Products is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling investment option [9]

Growth Stocks Overview - Growth stocks are attractive due to their above-average financial growth and potential for exceptional returns, but they carry higher risk and volatility [1] - Identifying great growth stocks is challenging, especially if a company's growth story is nearing its end [1] Zacks Growth Style Score - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing a company's real growth prospects beyond traditional attributes [2] - Dorman Products (DORM) is recommended by the Zacks system, with a favorable Growth Score and a top Zacks Rank [2] Earnings Growth - Earnings growth is a critical factor for growth stocks, with double-digit growth indicating strong prospects and potential stock price gains [3] - Dorman Products' historical EPS growth rate is 16.7%, but its projected EPS growth for this year is 52%, significantly higher than the industry average of 30.8% [4] Cash Flow Growth - Cash flow growth is particularly important for growth-oriented companies, enabling them to fund new projects without external financing [5] - Dorman Products' year-over-year cash flow growth is 1.6%, outperforming the industry average of -14% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 3.4%, compared to the industry average of 3% [6] Earnings Estimate Revisions - Positive trends in earnings estimate revisions are strongly correlated with near-term stock price movements [7] - Dorman Products' current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate surging 12.3% over the past month [8] Conclusion - Dorman Products has a Growth Score of B and a Zacks Rank 1, positioning it well for outperformance, making it an attractive option for growth investors [8][9]

Dorman Products (DORM) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The ...

Have you been paying attention to shares of Dorman Products (DORM) ? Shares have been on the move with the stock up 26.4% over the past month. The stock hit a new 52-week high of $138.15 in the previous session. Dorman Products has gained 65.1% since the start of the year compared to the -8.7% move for the Zacks Auto-Tires-Trucks sector and the -21% return for the Zacks Automotive - Replacement Parts industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as i ...

Dorman Products, Inc. (NASDAQ:DORM) Q3 2024 Results Conference Call November 1, 2024 8:00 AM ET Company Participants Alex Whitelam - VP, IR and Risk Management Kevin Olsen - CEO David Hession - CFO Conference Call Participants Scott Stember - ROTH MKM Bret Jordan - Jefferies Gary Prestopino - Barrington Research Operator Good morning, and thank you for standing by. Welcome to the Dorman Products Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question ...