Patterson Companies (PDCO) Q1 Earnings: What's In Store?

Patterson Companies Inc (NASDAQ:PDCO) is set to report first-quarter 2017 results on Aug 25, before the opening bell. Last quarter, the company reported adjusted earnings of 77 cents per share from continuing operations, beating the Zacks Consensus Estimate by a penny.

However, the four-quarter trailing average surprise came negative at 4.21%.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

We believe a growing and diversified product portfolio, strong veterinary business prospects, accretive acquisitions and strategic partnerships are key catalysts for the company.

Exclusively, the partnership of Patterson Companies with Sirona in bringing high-tech CEREC units to dental groups registered with American Dental Partners is likely to help the company gain market traction.

We are also highly optimistic about the lucrative opportunities in the companion-animal and production animal segment. The company is expected to primarily benefit from improving end markets which would drive top-line growth over the long haul.

Earnings Whispers

However, our proven model does not conclusively show that Patterson Companies is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Patterson Companies currently has an Earnings ESP of -3.92%. This is because the Most Accurate estimate stands at 49 cents while the Zacks Consensus Estimate remains at 51 cents.

Zacks Rank: Patterson Companies currently carries a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revision.

Stocks to Consider

Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Best Buy Co., Inc (NYSE:BBY) with an Earnings ESP of +4.76% and a Zacks Rank #3.

Ascendis Pharma A/S Inc. (NASDAQ:ASND) with an Earnings ESP of +7.46% and a Zacks Rank #2.

Broadcom Limited (NASDAQ:AVGO) with an Earnings ESP of +0.87% and a Zacks Rank #3.