We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Patterson Companies (PDCO) Surprise in Q4 Earnings?
Read MoreHide Full Article
Patterson Companies Inc. (PDCO - Free Report) is set to announce fourth-quarter fiscal 2016 earnings on May 26. Last quarter, the company reported earnings of 68 cents per share which beat the Zacks Consensus Estimate by a penny.
However, we note that the company has posted an average negative surprise of 3.38% over the last four quarters.
Let’s find out how things are shaping up for this quarter.
Factors at Play
Post the release of third-quarter fiscal 2016 results, Patterson Companies narrowed its adjusted earnings projection to the range of $2.42 to $2.48 per share from the previous band of $2.40–$2.50.
Although prospects of the dental and companion animals market is encouraging, sluggish growth projection for the production animal market is a concern. Nevertheless, Patterson Companies expects higher sales from CEREC, driven by the introduction of the new product (Zirconia) and growing international sales.
However, lack of operating margin expansion opportunities will hurt earnings, in our view.
Earnings Whispers
Our proven model does not conclusively show that Patterson Companies is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Patterson Companies has a Zacks ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 76 cents.
Zacks Rank: Patterson Companies has a Zacks Rank #3 which increases the predictive power of ESP; but when combined with a 0.00% ESP, it makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Air Methods , with earnings ESP of +1.05% and a Zacks Rank #1.
CONMED (CNMD - Free Report) , with earnings ESP of +2.22% and a Zacks Rank #2.
Laboratory Corp. of America Holdings (LH - Free Report) , with earnings ESP of +.87% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Can Patterson Companies (PDCO) Surprise in Q4 Earnings?
Patterson Companies Inc. (PDCO - Free Report) is set to announce fourth-quarter fiscal 2016 earnings on May 26. Last quarter, the company reported earnings of 68 cents per share which beat the Zacks Consensus Estimate by a penny.
However, we note that the company has posted an average negative surprise of 3.38% over the last four quarters.
PATTERSON COS Price and Consensus
PATTERSON COS Price and Consensus | PATTERSON COS Quote
Let’s find out how things are shaping up for this quarter.
Factors at Play
Post the release of third-quarter fiscal 2016 results, Patterson Companies narrowed its adjusted earnings projection to the range of $2.42 to $2.48 per share from the previous band of $2.40–$2.50.
Although prospects of the dental and companion animals market is encouraging, sluggish growth projection for the production animal market is a concern. Nevertheless, Patterson Companies expects higher sales from CEREC, driven by the introduction of the new product (Zirconia) and growing international sales.
However, lack of operating margin expansion opportunities will hurt earnings, in our view.
Earnings Whispers
Our proven model does not conclusively show that Patterson Companies is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Patterson Companies has a Zacks ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 76 cents.
Zacks Rank: Patterson Companies has a Zacks Rank #3 which increases the predictive power of ESP; but when combined with a 0.00% ESP, it makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Air Methods , with earnings ESP of +1.05% and a Zacks Rank #1.
CONMED (CNMD - Free Report) , with earnings ESP of +2.22% and a Zacks Rank #2.
Laboratory Corp. of America Holdings (LH - Free Report) , with earnings ESP of +.87% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>