Dorman Products Inc. (NASDAQ: DORM) saw its stock price plummet 9.60% during intraday trading on Wednesday. The sharp decline followed the company's release of its fourth quarter and full year 2025 financial results.
The automotive parts supplier reported fourth quarter net sales of $537.9 million, significantly missing the Ibes consensus estimate of $574 million. While adjusted diluted earnings per share of $2.17 slightly exceeded estimates of $2.14, the reported diluted EPS of $0.38 reflected a 79% year-over-year decline due to a $51.1 million non-cash goodwill impairment charge related to its Heavy Duty segment.
Investors reacted negatively to the company's 2026 guidance, which projects adjusted diluted EPS in the range of $8.10 to $8.50. This represents a potential decline of 4% to 9% compared to the 2025 adjusted diluted EPS of $8.87, signaling weaker profitability expectations for the coming year despite projected sales growth of 7% to 9%.