Dorman Products’ EPS Outlook Slashed 4-9%, Roth Cuts Target 11% to $162
Roth Capital reduced its price target on Dorman Products by 11% to $162 while maintaining a Buy rating after Q4 adjusted EPS of $2.17 topped consensus $2.12. Management projected FY26 revenue growth of 7-9% but guided diluted EPS down 4-9% to $8.10-$8.50 versus $9.44 estimates.
1. Analyst Price Target Reduction
Roth Capital on March 2 reduced its price target on Dorman Products by 11% to $162 from $182 while maintaining a Buy recommendation, citing concerns over margin pressure and the company’s future earnings trajectory.
2. Q4 Earnings Performance
In Q4, Dorman reported adjusted diluted EPS of $2.17, beating the $2.12 consensus despite a 1.4% year-over-year decline. The Heavy Duty segment saw mid-single-digit volume growth and expanded profit margins, the Light Duty segment delivered flat revenue, and the Specialty Vehicle segment experienced margin contraction due to higher labor costs and weak consumer spending.
3. FY26 Guidance Outlook
For fiscal 2026, management forecast revenue growth of 7% to 9% but expects diluted EPS to decline 4% to 9%, implying a range of $8.10 to $8.50 per share—well below the $9.44 street estimate and signaling ongoing margin headwinds.