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Analyst Blog

Patterson Companies Inc. (PDCO - Free Report) is set to report fiscal second-quarter 2017 results on Nov 22, before the opening bell. Last quarter, the company reported adjusted earnings of 51 cents per share from continuing operations, in line with the Zacks Consensus Estimate.

For the trailing four quarters, the company delivered an average negative surprise of 0.97%.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

We believe a growing and diversified product portfolio, strong veterinary business prospects, accretive acquisitions and strategic partnerships are the key catalysts for the company.

Exclusively, the partnership of Patterson Companies with Sirona in bringing high-tech CEREC units to dental groups registered with American Dental Partners is likely to help the company gain market traction.

We are also highly optimistic about the lucrative opportunities in the companion-animal and production-animal segments. The company is expected to primarily benefit from improving end markets, which would drive top-line growth over the long haul.

PATTERSON COS Price and EPS Surprise

 

PATTERSON COS Price and EPS Surprise | PATTERSON COS Quote

Earnings Whispers
    
However, our proven model does not conclusively show that Patterson Companies is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:

Zacks ESP: Patterson Companies currently has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 61 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Patterson Companies currently carries a Zacks Rank #3 (Hold) which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are a few stocks worth considering that, as per our model, have the right combination of elements to post an earnings beat:

Advanced Accelerator Applications S.A. (AAAP - Free Report) has an Earnings ESP of +55.56% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Adamas Pharmaceuticals, Inc. (ADMS - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #2 (Buy).

Amarin Corporation plc (AMRN - Free Report) has an Earnings ESP of +11.11% and a Zacks Rank #2.

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