Patterson Companies Earnings: Keeping the Profitability Streak Alive

S&P 500 (NYSE:SPY) component Patterson Companies Inc. (NASDAQ:PDCO) reported its results for the second quarter. Patterson Companies distributes dental, companion-pet veterinarian, and rehabilitation supplies.

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Patterson Companies Inc. Earnings Cheat Sheet

Results: Net income for Patterson Companies Inc. fell to $45.5 million (44 cents per share) vs. $49 million (43 cents per share) a year earlier. This is a decline of 7% from the year-earlier quarter.

Revenue: Rose 1.2% to $867.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Patterson Companies Inc. fell short of the mean analyst estimate of 49 cents per share. It fell short of the average revenue estimate of $915.8 million.

Quoting Management: Scott P. Anderson, president and chief executive officer, commented: “Several areas of our business, including dental technology equipment and Webster Veterinary, performed well in the second quarter. On balance, however, we are not satisfied with our recent operating results, which did not meet our expectations, and we are committed to strengthening Patterson’s long-term performance. While our businesses, like many others, are challenged by current economic conditions, we will continue to make the investments that position Patterson to capitalize upon opportunities in each of our markets.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 4.9% to $889.2 million in the first quarter. The figure rose 5.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 4 cents with net income of 45 cents versus a mean estimate of net income of 49 cents per share.

Net income has dropped 4.5% year-over-year on average across the last five quarters. Performance was hurt by an 8.3% decline in the second quarter of the last fiscal year from the year-earlier quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to 55 cents per share from 54 cents. At $2.12 per share, the average estimate for the fiscal year has fallen from $2.14 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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