Benzinga | Feb 19, 2021 10:38AM EST

Earnings Outlook For Dorman Products

Dorman Products (NASDAQ:DORM) announces its next round of earnings this Monday, February 22. Here is Benzinga's everything-that-matters guide for this Monday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, Dorman Products analysts model for earnings of $0.92 per share on sales of $269.69 million. Dorman Products EPS in the same period a year ago totaled $0.52. Sales were $239.57 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be up 76.92%. Sales would be have grown 12.57% from the same quarter last year. Dorman Products's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.85 0.45 0.65 0.70EPS Actual 1.14 0.47 0.66 0.52Revenue Estimate 276.33 M 202.68 M 238.04 M 265.89 MRevenue Actual 300.62 M 233.18 M 257.73 M 239.57 M

Stock Performance

For a full 12 months, the return has risen by 40.67%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Dorman Products is scheduled to hold the call at 08:00:00 ET and can be accessed here.