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Patterson Companies (PDCO) Up 6.9% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Patterson Companies, Inc. (PDCO - Free Report) . Shares have added about 6.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Patterson Companies Earnings Beat Estimates in Q4
Patterson Companies reported fourth-quarter fiscal 2017 adjusted earnings of $0.69 per share from continuing operations, which outpaced the Zacks Consensus Estimate of $0.64. The figure, however, came lower than the year-ago quarterly figure of $0.77.
Net sales from continuing operations dipped 0.62% from the year-ago quarter to $1.45 billion missing the Zacks Consensus Estimate of $1.47 billion.
Quarter Details
Coming to the Animal Health platform (58% of total sales), sales increased almost 6.0% on a year-over-year basis to $827.5 million. Sales of Consumable grew 5.1% year over year. However, the Other services and products on this platform witnessed a 5.8% year-over-year decline in sales.
Patterson Companies’ Dental platform (42% of total sales) sales fell 8.3% year over year to $607.3 million approximately. Consumable sales at the Dental platform dropped 4.3% year over year to $339.4 million, while sales from other services and products increased by 0.2%. Sales from dental equipment and software dipped 16.9%.
Financial Condition
Cash and cash equivalents were $94.9 million as of Apr 29, 2017 compared to $137.5 million as of Apr 30, 2016. In fiscal 2017, Patterson repurchased approximately 2.9 million shares for $125.4 million. This leaves approximately 13.6 million shares for repurchase under the current authorization, which expires in Mar 2018. The company also disbursed $25.0 million in cash dividends to shareholders in the fourth quarter and $95.9 million in cash dividends to shareholders in fiscal 2017.
Outlook
Patterson Companies affirmed its adjusted earnings in the range of $2.25–$2.40 per share for fiscal 2018. GAAP earnings are expected to be in the range of $1.90 to $2.05 per diluted share.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter. In the past month, the consensus estimate has shifted down by 7.7% due to these changes.
At this time, the stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #4 (Sell). We are expecting a below average return from the stock in the next few months.
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Patterson Companies (PDCO) Up 6.9% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Patterson Companies, Inc. (PDCO - Free Report) . Shares have added about 6.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Patterson Companies Earnings Beat Estimates in Q4
Patterson Companies reported fourth-quarter fiscal 2017 adjusted earnings of $0.69 per share from continuing operations, which outpaced the Zacks Consensus Estimate of $0.64. The figure, however, came lower than the year-ago quarterly figure of $0.77.
Net sales from continuing operations dipped 0.62% from the year-ago quarter to $1.45 billion missing the Zacks Consensus Estimate of $1.47 billion.
Quarter Details
Coming to the Animal Health platform (58% of total sales), sales increased almost 6.0% on a year-over-year basis to $827.5 million. Sales of Consumable grew 5.1% year over year. However, the Other services and products on this platform witnessed a 5.8% year-over-year decline in sales.
Patterson Companies’ Dental platform (42% of total sales) sales fell 8.3% year over year to $607.3 million approximately. Consumable sales at the Dental platform dropped 4.3% year over year to $339.4 million, while sales from other services and products increased by 0.2%. Sales from dental equipment and software dipped 16.9%.
Financial Condition
Cash and cash equivalents were $94.9 million as of Apr 29, 2017 compared to $137.5 million as of Apr 30, 2016. In fiscal 2017, Patterson repurchased approximately 2.9 million shares for $125.4 million. This leaves approximately 13.6 million shares for repurchase under the current authorization, which expires in Mar 2018. The company also disbursed $25.0 million in cash dividends to shareholders in the fourth quarter and $95.9 million in cash dividends to shareholders in fiscal 2017.
Outlook
Patterson Companies affirmed its adjusted earnings in the range of $2.25–$2.40 per share for fiscal 2018. GAAP earnings are expected to be in the range of $1.90 to $2.05 per diluted share.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter. In the past month, the consensus estimate has shifted down by 7.7% due to these changes.
Patterson Companies, Inc. Price and Consensus
Patterson Companies, Inc. Price and Consensus | Patterson Companies, Inc. Quote
VGM Scores
At this time, the stock has a strong Growth Score of 'A', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #4 (Sell). We are expecting a below average return from the stock in the next few months.