Patterson Companies Inc. Earnings Cheat Sheet: Second Quarter of Falling Profit

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 Earnings Cheat Sheet for the Second Quarter

Results: Net income for the medical equipment wholesale fell to $49 million (43 cents per share) vs. $53.4 million (45 cents per share) a year earlier. This is a decline of 8.3% from the year earlier quarter.

Revenue: Remained constant at $856.9 million.

Actual vs. Wall St. Expectations: PDCO reported adjusted net income of 46 cents per share. By that measure, the company fell short of mean estimate of 47 cents per share. It fell short of the average revenue estimate of $887.8 million.

Quoting Management: Scott P. Anderson, president and chief executive officer, commented: “Sales of consumable supplies were solidly higher at our three businesses in the second quarter. We believe this indicates that patient traffic is improving moderately within our three served markets despite the weak economic environment. Reduced CEREC sales, together with general softness in the equipment businesses at our three operating units, adversely affected Patterson’s second quarter consolidated sales and earnings. We are focusing our marketing initiatives on boosting demand within our customer base for capital equipment during the remainder of our fiscal year. While customers remain cautious on spending for equipment, we believe opportunities exist in this currently challenging market as we approach the seasonal peak for equipment purchasing decisions.”

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 9.9% from the year earlier quarter.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 3 cents with net income of 42 cents versus a mean estimate of net income of 45 cents per share.

Looking Forward: The average estimate for the third quarter remains unchanged at 50 cents a share. For the fiscal year, the average estimate has moved down from $1.96 a share to $1.94 over the last ninety days.

Competitors to Watch: Henry Schein, Inc. (NASDAQ:HSIC), PSS World Medical, Inc. (NASDAQ:PSSI), Owens & Minor, Inc. (NYSE:OMI), Chindex Intl., Inc. (NASDAQ:CHDX), McKesson Corporation (NYSE:MCK), Lincare Holdings Inc. (NASDAQ:LNCR), AmerisourceBergen Corp. (NYSE:ABC), White Dental Supply Inc (WITD), Certified Diabetic Services Inc (CDIPQ), and E Med Future, Inc (EMDF).

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