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S&P 500 (NYSE:SPY) component Patterson Companies Inc. (NASDAQ:PDCO) reported its results for the first 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 $47.5 million (45 cents per share) vs. $48.6 million (42 cents per share) a year earlier. This is a decline of 2.2% from the year-earlier quarter.
Revenue: Rose 4.9% to $889.2 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: “We are generally pleased with Patterson’s on-plan first quarter results despite persistently soft economic conditions both in North America and our foreign markets. Within Patterson Dental, sales of consumable supplies were below forecasted levels, and we are intensifying our focus on this key component of our sales mix. However, the exceptionally strong sales growth of CEREC products and low double-digit sales growth of basic equipment more than compensated for the below-plan consumables sales. Our robust CEREC sales were generated in part by strong demand from new users, reflecting the ongoing trend toward the digitization of dentistry. We believe sales will receive an additional boost from the recent introduction by Sirona Dental Systems, Inc. (NASDAQ:SIRO) of a revolutionary powder-free intraoral camera that will make CEREC significantly easier to use. This camera, which will be available on new CEREC systems, will start selling in the second quarter as production ramps up.”
Revenue has now increased for three consecutive quarters. In the fourth quarter of the last fiscal year, revenue rose 5.9% to $936.3 million while the figure rose 8.5% in the third quarter of the last fiscal year from the year earlier.
The company fell short of estimates last quarter after beating the mark the quarter before with net income of 58 cents versus a mean estimate of net income of 57 cents per share.
Net income has dropped 5.1% year-over-year on average across the last five quarters. Performance was hurt by a 9.9% decline in the first quarter of the last fiscal year from the year-earlier quarter.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 51 cents a share to 50 cents over the last ninety days. The average estimate for the fiscal year has remained at $2.14 per share.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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