Patterson Companies First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Patterson Companies, Inc. (NASDAQ:PDCO) will unveil its latest earnings on Thursday, August 23, 2012. Patterson Companies distributes dental, companion-pet veterinarian, and rehabilitation supplies.

Patterson Companies, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 49 cents per share, a rise of 16.7% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 11.5% compared to last year’s $2.14.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the fourth quarter of the last fiscal year, it reported net income of 58 cents per share versus a mean estimate of 57 cents. Two quarters ago, it reported profit of 50 cents per share.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.65 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.71 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 46.7% to $529.6 million while assets rose 4.7% to $1.4 billion.

Stock Price Performance: Between May 23, 2012 and August 17, 2012, the stock price rose $3.46 (10.6%), from $32.67 to $36.13. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 1, 2012, when shares rose for seven straight days, increasing 6.5% (+$2.11) over that span. It saw one of its worst periods between February 28, 2012 and March 7, 2012 when shares fell for seven straight days, dropping 5.3% (-$1.72) over that span.

Wall St. Revenue Expectations: On average, analysts predict $883.5 million in revenue this quarter, a rise of 4.3% from the year-ago quarter. Analysts are forecasting total revenue of $3.68 billion for the year, a rise of 4% from last year’s revenue of $3.54 billion.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 8.5% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With five analysts rating the stock as a buy, one rating it as a sell and five rating it as a hold, there are indications of a bullish outlook.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 0.9% to $62.1 million (58 cents a share) from $62.7 million (53 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 5.9% to $936.3 million from $883.8 million.

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

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