PSS World Medical Inc. (NASDAQ:PSSI) reported its results for the first quarter. PSS World Medical, Inc. is a national distributor of medical products and equipment, pharmaceutical products, healthcare information technology and billing services to alternate-site healthcare providers.
PSS World Medical Earnings Cheat Sheet for the First Quarter
Results: Net income for PSS World Medical Inc. rose to $14.2 million (25 cents per share) vs. $13.8 million (24 cents per share) in the same quarter a year earlier. This marks a rise of 3.3% from the year earlier quarter.
Revenue: Rose 7.3% to $513.7 million from the year earlier quarter.
Actual vs. Wall St. Expectations: PSSI fell short of the mean analyst estimate of 28 cents per share. Analysts were expecting revenue of $522.5 million.
Quoting Management: President and Chief Executive Officer, Gary A. Corless, commented, “The markets we serve continue to see economic pressures from higher operating costs, reimbursement headwinds, and lower utilization. While we do not see these trends improving in the short-term, our business strategies have continued to deliver satisfying results, with added customers, growth in our brands, and solid operational execution. This traction is allowing us to invest aggressively in new programs and capabilities – these investments show up in year-over-year growth in operating expenses that exceed historical patterns – while still meeting our target for first quarter net income.”
Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.4 percentage point to 31.3% from the year earlier quarter. Over that span, margins have grown on average 0.6 percentage point per quarter on a year-over-year basis.
The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 31.4% and in the third quarter of the last fiscal year, the figure rose 9.1%.
The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by one cent, and in the third quarter of the last fiscal year, it was ahead by one cent.
Revenue has now gone up for three straight quarters. In the fourth quarter of the last fiscal year, revenue rose 10.6% to $549.7 million while the figure rose 1.5% in the third quarter of the last fiscal year from the year earlier.
Competitors to Watch: Henry Schein, Inc. (NASDAQ:HSIC), Chindex Intl., Inc. (NASDAQ:CHDX), Patterson Companies, Inc. (NASDAQ:PDCO), Owens & Minor, Inc. (NYSE:OMI), Lincare Holdings Inc. (NASDAQ:LNCR), Cardinal Health, Inc. (NYSE:CAH), AmerisourceBergen Corp. (NYSE:ABC).
(Source: Xignite Financials)