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Patterson Companies: Q2 Results Dismal, Forex a Concern
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On Nov 30, we issued an updated research report on St. Paul, MN-based Patterson Companies Inc. (PDCO - Free Report) – a leading distributor of dental and animal health products. The company currently carries a Zacks Rank #4 (Sell).
Patterson Companies represents a negative return of 14.3% year to date, much lower than the S&P 500’s almost 7.6% over the same time frame. In fact, over the last seven days, the Zacks Consensus Estimate for full-year 2016 earnings decreased by 11 cents to $2.31 per share, with one estimate moving down.
Meanwhile, Patterson Companies has been an underperformer in the Zacks Categorized Dental Supplies sub-industry as well. The stock represented a return of roughly -17.4% in the past three months, wider than the -7.9% return of the sub-industry.
Notably, Patterson Companies recorded a negative earnings surprise of roughly 8.2% in the last reported quarter.
The company ended second-quarter fiscal 2017 on a dismal note, missing the Zacks Consensus Estimate for both the top and the bottom line. Also, a lackluster performance by the company’s Dental platform is a dampener.
Of the other adverse factors, unfavorable foreign exchange and higher operating expenses are major concerns.
Additionally, the U.S. dental products distribution industry is highly competitive, which poses a major threat to Patterson Companies. Notably, the U.S. dental products distribution industry consists of national, regional and local full-service and mail-order distributors like Henry Schein Dental, a national, full-service firm and a unit of Henry Schein.
However, an estimated sales growth rate for of 6.82% for the current year buoys optimism for the stock, as it is better than the industry average of 5.35%.
Zacks Rank & Other Key Picks
Better-ranked stocks in the broader medical space include HMS Holdings Corp. , Medidata Solutions Inc. and IDEXX Laboratories, Inc. (IDXX - Free Report) . Notably, HMS Holdings and Medidata Solutions carry a Zacks Rank #2 while IDEXX Laboratories sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HMS Holdings has a long-term expected growth rate of 14.26%. Notably, the company has a solid one-year return of roughly 43.7%.
Medidata Solutions has a strong one-year return of roughly 23.4%. The stock represents a long-term expected growth rate of 22.33%.
IDEXX Laboratories represents a solid one-year return of almost 63.7%. The company has a long-term expected growth rate of almost 14.96%.
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Patterson Companies: Q2 Results Dismal, Forex a Concern
On Nov 30, we issued an updated research report on St. Paul, MN-based Patterson Companies Inc. (PDCO - Free Report) – a leading distributor of dental and animal health products. The company currently carries a Zacks Rank #4 (Sell).
Patterson Companies represents a negative return of 14.3% year to date, much lower than the S&P 500’s almost 7.6% over the same time frame. In fact, over the last seven days, the Zacks Consensus Estimate for full-year 2016 earnings decreased by 11 cents to $2.31 per share, with one estimate moving down.
Meanwhile, Patterson Companies has been an underperformer in the Zacks Categorized Dental Supplies sub-industry as well. The stock represented a return of roughly -17.4% in the past three months, wider than the -7.9% return of the sub-industry.
Notably, Patterson Companies recorded a negative earnings surprise of roughly 8.2% in the last reported quarter.
The company ended second-quarter fiscal 2017 on a dismal note, missing the Zacks Consensus Estimate for both the top and the bottom line. Also, a lackluster performance by the company’s Dental platform is a dampener.
Of the other adverse factors, unfavorable foreign exchange and higher operating expenses are major concerns.
Additionally, the U.S. dental products distribution industry is highly competitive, which poses a major threat to Patterson Companies. Notably, the U.S. dental products distribution industry consists of national, regional and local full-service and mail-order distributors like Henry Schein Dental, a national, full-service firm and a unit of Henry Schein.
However, an estimated sales growth rate for of 6.82% for the current year buoys optimism for the stock, as it is better than the industry average of 5.35%.
Zacks Rank & Other Key Picks
Better-ranked stocks in the broader medical space include HMS Holdings Corp. , Medidata Solutions Inc. and IDEXX Laboratories, Inc. (IDXX - Free Report) . Notably, HMS Holdings and Medidata Solutions carry a Zacks Rank #2 while IDEXX Laboratories sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HMS Holdings has a long-term expected growth rate of 14.26%. Notably, the company has a solid one-year return of roughly 43.7%.
Medidata Solutions has a strong one-year return of roughly 23.4%. The stock represents a long-term expected growth rate of 22.33%.
IDEXX Laboratories represents a solid one-year return of almost 63.7%. The company has a long-term expected growth rate of almost 14.96%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>