Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Patterson Companies (PDCO) Q1 Earnings Meet Estimates

By Zacks Investment ResearchStock MarketsAug 25, 2016 03:55AM ET
www.investing.com/analysis/patterson-companies-(pdco)-q1-earnings-meet-estimates-200150106
Patterson Companies (PDCO) Q1 Earnings Meet Estimates
By Zacks Investment Research   |  Aug 25, 2016 03:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Patterson Companies Inc. (NASDAQ:PDCO) reported first-quarter fiscal 2017 adjusted earnings of 51 cents per share from continuing operations, which were in line with the Zacks Consensus Estimate. The figure also improved 8.5% year over year on higher sales.

Quarter Details

Net sales from continuing operations increased 16.6% (23.3% at constant exchange rate or CER) year over year to $1.33 billion, which beat the Zacks Consensus Estimate of $1.32 billion. The year-over-year improvement reflected robust performance by the Animal Health platform.

Coming to the Animal Health platform, sales at Patterson Companies’ this segment (57% of total sales) surged almost 36.8% on a year-over-year basis to $762.6 million on the back of a 38.3% increase in consumable products sales. Sales of equipment and software of this platform climbed 2.6% year over year. However, the other services and products on this platform witnessed a year-over-year decline of 9.1% in sales.

The year-over-year upside in this platform was driven by strong performance delivered by Patterson’s production animal business and the U.S. companion animal business. Livestock end markets also contributed to this platform’s growth in the reported quarter.

Sales in Patterson Companies’ Dental platform (43% of total sales) decreased 3.5% to $555 million approximately. However, sales grew 2.1% at CER. Consumable sales at the dental platform dropped 7% to $332.9 million on a year-over-year basis, while sales from other services and products decreased 3%. However, sales from dental equipment and software rose 5%..

Within the dental platform, management witnessed strong growth in equipment sales volumes as well as strong demand for technology adoption. Further, to address a transformation observed in the purchasing patterns of this platform’s customers, the company adopted the ‘go-to-market’ strategy. .

PATTERSON COS Price, Consensus and EPS Surprise

PATTERSON COS Price, Consensus and EPS Surprise | PATTERSON COS Quote

Margin Details

Gross margin contracted 140 basis points (bps) to 23.8% in the reported quarter.

Adjusted operating expenses, as a percentage of revenues, decreased 90 bps to 18.9%. However, adjusted operating margin contracted 50 bps to 4.9%.

Outlook

Patterson Companies reaffirmed its adjusted earnings for fiscal 2017 in the range of $2.60--$2.70 per share, including $25 million incremental operating expenses related to the ERP implementation. The company expects North American and international markets to remain stable through fiscal 2017. The current Zacks Consensus Estimate for fiscal 2017 stands at $2.65, in line with the mid-point of the company provided guidance.

Zacks Rank & Key Picks

Patterson Companies currently has a Zacks Rank #4 (Sell).

Better-ranked stocks in the broader medical sector are Halyard Health (NYSE:HYH) , Masimo Corp. (NASDAQ:MASI) and IDEXX Laboratories Inc (NASDAQ:IDXX) . Notably, all the three stocks sport a Zacks Rank #1 (Strong Buy).



MASIMO CORP (MASI): Free Stock Analysis Report

IDEXX LABS INC (IDXX): Free Stock Analysis Report

PATTERSON COS (PDCO): Free Stock Analysis Report

HALYARD HEALTH (HYH): Free Stock Analysis Report

Original post

Zacks Investment Research
Patterson Companies (PDCO) Q1 Earnings Meet Estimates
 

Related Articles

Michael Kramer
NASDAQ Could Fall Another 13% By Michael Kramer - Jan 28, 2022 50

This article was written exclusively for Investing.comThe NASDAQ Composite has fallen sharply to start 2022, down nearly 13%. But don't expect the index to race back to record...

Patterson Companies (PDCO) Q1 Earnings Meet Estimates

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email