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Is a Beat Likely for Patterson Companies (PDCO) in Q1 Earnings?
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Patterson Companies, Inc. (PDCO - Free Report) is expected to release first-quarter fiscal 2024 results on Aug 30, before the opening bell.
The company delivered an earnings surprise of 20.00% in the last reported quarter. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an average surprise of 4.52%.
Q1 Estimates
For the to-be-reported quarter, the Zacks Consensus Estimate for the company’s revenues is pegged at $1.57 billion, indicating a 3.2% increase from the prior-year period’s level.
The same for adjusted earnings per share is pinned at 40 cents, indicating a 25% improvement from that recorded in the year-ago quarter.
Factors to Note
As one of the leading distributors of consumable products and dental technology, Patterson Companies’ Dental arm is one of the key contributors to its top line. However, COVID-19 is likely to have impacted the company’s Dental business in the fiscal first quarter.
Per management, in the fourth quarter of fiscal 2023, sales at this segment increased 7.4% year over year. The improvement was driven by growth in all sub-segments. Strength was seen across all equipment categories as well as in technical service, software and e-services. Meanwhile, the consumables portfolio of non-infection control products continues to recover amid deflationary impact for certain products. These trends are likely to have continued in the to-be-reported quarter.
In the fourth quarter of fiscal 2023, sales in the Animal Health segment increased 3.2% on a year-over-year basis. The Animal Health segment has been gaining from growth in pet adoptions and increased attention to pets. On its fourth-quarter fiscal 2023 earnings call, the companion animal business continued to show signs of prosperity and expected to gain from the long-term tailwinds of higher pet ownership in the past two years. Consequently, this trend is likely to get reflected in the first-quarter results.
Meanwhile, foundation initiatives including improved mix, exercising expense discipline and leveraging cost structure are expected to have improved gross and operating margins during the soon-to-be-reported quarter. However, intense competition across most of the product lines and inflationary pressures might have weighed on the company’s overall quarterly performance.
Our proven model predicts an earnings beat for Patterson Companies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (42 cents per share) and the Zacks Consensus Estimate (40 cents per share), is +5.66%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently has a Zacks Rank #2.
COO has an estimated revenue growth rate of 7.3% for fiscal 2023. It delivered a trailing four-quarter average earnings surprise of 0.01%.
Centene (CNC - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #3 at present. CNC has an estimated earnings growth rate of 11.8% for 2023.
Centene delivered a trailing four-quarter average earnings surprise of 0.62%.
CONMED (CNMD - Free Report) has an Earnings ESP of +0.17% and a Zacks Rank #3 at present. CNMD has an estimated earnings growth rate of 31.3% for 2023.
CONMED’s earnings surpassed estimates in three of the trailing four quarters and missed the mark in one, delivering a negative average surprise of 9.28%.
Image: Bigstock
Is a Beat Likely for Patterson Companies (PDCO) in Q1 Earnings?
Patterson Companies, Inc. (PDCO - Free Report) is expected to release first-quarter fiscal 2024 results on Aug 30, before the opening bell.
The company delivered an earnings surprise of 20.00% in the last reported quarter. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an average surprise of 4.52%.
Q1 Estimates
For the to-be-reported quarter, the Zacks Consensus Estimate for the company’s revenues is pegged at $1.57 billion, indicating a 3.2% increase from the prior-year period’s level.
The same for adjusted earnings per share is pinned at 40 cents, indicating a 25% improvement from that recorded in the year-ago quarter.
Factors to Note
As one of the leading distributors of consumable products and dental technology, Patterson Companies’ Dental arm is one of the key contributors to its top line. However, COVID-19 is likely to have impacted the company’s Dental business in the fiscal first quarter.
Per management, in the fourth quarter of fiscal 2023, sales at this segment increased 7.4% year over year. The improvement was driven by growth in all sub-segments. Strength was seen across all equipment categories as well as in technical service, software and e-services. Meanwhile, the consumables portfolio of non-infection control products continues to recover amid deflationary impact for certain products. These trends are likely to have continued in the to-be-reported quarter.
In the fourth quarter of fiscal 2023, sales in the Animal Health segment increased 3.2% on a year-over-year basis. The Animal Health segment has been gaining from growth in pet adoptions and increased attention to pets. On its fourth-quarter fiscal 2023 earnings call, the companion animal business continued to show signs of prosperity and expected to gain from the long-term tailwinds of higher pet ownership in the past two years. Consequently, this trend is likely to get reflected in the first-quarter results.
Meanwhile, foundation initiatives including improved mix, exercising expense discipline and leveraging cost structure are expected to have improved gross and operating margins during the soon-to-be-reported quarter. However, intense competition across most of the product lines and inflationary pressures might have weighed on the company’s overall quarterly performance.
Patterson Companies, Inc. Price and Consensus
Patterson Companies, Inc. price-consensus-chart | Patterson Companies, Inc. Quote
Expected Earnings Beat
Our proven model predicts an earnings beat for Patterson Companies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (42 cents per share) and the Zacks Consensus Estimate (40 cents per share), is +5.66%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently has a Zacks Rank #2.
Other Stocks Worth a Look
The Cooper Companies (COO - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
COO has an estimated revenue growth rate of 7.3% for fiscal 2023. It delivered a trailing four-quarter average earnings surprise of 0.01%.
Centene (CNC - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #3 at present. CNC has an estimated earnings growth rate of 11.8% for 2023.
Centene delivered a trailing four-quarter average earnings surprise of 0.62%.
CONMED (CNMD - Free Report) has an Earnings ESP of +0.17% and a Zacks Rank #3 at present. CNMD has an estimated earnings growth rate of 31.3% for 2023.
CONMED’s earnings surpassed estimates in three of the trailing four quarters and missed the mark in one, delivering a negative average surprise of 9.28%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.