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Patterson Companies (PDCO) Earnings Beat Estimates in Q3

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Patterson Companies Inc. (PDCO - Free Report) reported third-quarter fiscal 2017 adjusted earnings of 58 cents per share from continuing operations, which came higher than the Zacks Consensus Estimate of 57 cents. The figure however came lower than the year-ago quarterly figure of 68 cents.

Net sales from continuing operations dipped 0.25% from the year-ago quarter to $1.40 billion, which missed the Zacks Consensus Estimate of $1.43 billion.

Stock Performance

The price performance of the stock has been favorable over the last three months. Patterson Companies registered a stable return of 13.60%, beating the Zacks classified Medical - Dental Supplies sub-industry’s gain of almost 8.46%.
 

 

Quarter Details

Coming to the Animal Health platform (55% of total sales), sales increased almost 1.7% on a year-over-year basis to $762.6 million on the back of a 13.2% rise in Equipment and software sales. Sales of Consumable grew 1.8% year over year. However, the Other services and products on this platform witnessed a 30.6% year-over-year decline in sales.

Patterson Companies’ Dental platform (45% of total sales) sales fell 1.8% year-over-year to $626.3 million approximately. Consumable sales at the Dental platform dropped 2.8% year over year to $325.2 million, while sales from other services and products decreased by 1.3%. Sales from dental equipment and software dipped 1.0%.

Financial Condition

Cash and cash equivalents were $121.7 million as of Jan 28, 2017 as against $137.5 million as of Apr 30, 2016. Fiscal year-to-date, Patterson repurchased approximately 2.0 million shares for $86.9 million. This leaves approximately 14.5 million shares for repurchase under the current authorization, which expires in Mar 2018. The company also discursed $23.3 million in cash dividends to shareholders in the third quarter and $70.9 million in cash dividends to shareholders in the first nine months of fiscal 2017.
 

 

Patterson Companies, Inc. Price, Consensus and EPS Surprise

 

Patterson Companies, Inc. Price, Consensus and EPS Surprise | Patterson Companies, Inc. Quote

Outlook

Patterson Companies affirmed its adjusted earnings in the range of $2.27–$2.33 per share for fiscal 2017.

Zacks Rank & Key Picks

Patterson Companies currently has a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector include Glaukos Corporation (GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . While Glaukos and Fluidigm sport a Zacks Rank #1 (Strong Buy), Avinger carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Glaukos Corporation has long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 180.4%.

Avinger projects sales growth of 30.7% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.

Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock has added 6.08% over the last one year.

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