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Patterson Companies (PDCO) Q4 Earnings Top Estimates, Up Y/Y
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Patterson Companies, Inc. (PDCO - Free Report) reported adjusted earnings per share (EPS) of 43 cents in fourth-quarter fiscal 2020, which beat the Zacks Consensus Estimate by 152.9%. Moreover, the bottom line improved 16.2% from the prior-year quarter.
For full-year fiscal 2020, the company reported adjusted EPS of $1.55, up 10.7% from the prior-year period. The figure surpassed the consensus mark by 20.2%.
Revenue Details
Net sales in the quarter were $1.29 billion, outpacing the Zacks Consensus Estimate by 1.9%. However, the top line declined 10.5% year over year.
For full-year fiscal 2020, the company delivered revenues of $5.49 billion, down 1.5% from fiscal 2019. Nonetheless, the figure surpassed the Zacks Consensus Estimate by 0.4%.
Patterson Companies, Inc. Price, Consensus and EPS Surprise
The company currently distributes products through subsidiaries Patterson Dental and Patterson Animal Health.
Dental Segment
This segment provides a complete range of consumable dental products, equipment, software, turnkey digital solutions and value-added services to dentists, and laboratories throughout North America.
In the fiscal fourth quarter, dental sales fell 27.3% year over year to $409.6 million.
Dental Consumable
Sales in the sub-segment totaled $230.5 million, down 26.1% year over year.
Dental Equipment & Software
Sales in the segment plunged 36.5% on a year-over-year basis to $110.8 million.
Other
This segment comprises technical service, parts and labor, software support services and office supplies. Sales at the segment declined 11.2% on a year-over-year basis to $68.3 million.
Animal Health Segment
This segment is a leading distributor of veterinary supplies to clinics, public and private institutions and shelters across the United States.
In the fiscal fourth quarter, the segment sales declined 1.5% on a year-over-year basis to $853.2 million.
Corporate
Sales at the segment were $23.6 million, which increased a whopping 246.5% from $6.8 million in the year-ago quarter.
Margin Analysis
Gross profit in the reported quarter was $294 million, down 5.9% year over year. As a percentage of revenues, gross margin of 22.9% expanded 110 basis points (bps) on a year-over-year basis.
Operating expenses in the reported quarter totaled $233.4 million, declining 12.2% from the year-ago quarter.
The company reported operating loss of $614.5 million against the year-ago quarter’s operating income of $46.6 million.
Fiscal 2021 Guidance
Due to the ongoing disruption of North American and international market conditions on account of the COVID-19 pandemic, the company is unable to predict the economic effects and related government actions resulting from the same. Therefore, Patterson Companies has decided not to issue fiscal 2021 earnings guidance at this time.
Our Take
Patterson Companies ended fourth-quarter fiscal 2020 on a strong note, wherein both earnings and revenues beat the consensus mark. The company witnessed expansion in gross margin in the quarter under review.
However, the company’s Dental and Animal Health segments displayed a dismal performance in the reported quarter.
Nonetheless, a broad spectrum of products cushions the company against economic downturns in the MedTech space. We believe that a diverse product portfolio, strong veterinary business prospects, accretive acquisitions and strategic partnerships are key catalysts.
Zacks Rank
Patterson Companies carries a Zacks Rank #4 (Sell).
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have already announced their quarterly results include Laboratory Corporation of America Holdings (LH - Free Report) , Quest Diagnostics Incorporated (DGX - Free Report) and Eli Lilly and Company (LLY - Free Report) .
LabCorp reported first-quarter 2020 adjusted EPS of $2.37, beating the Zacks Consensus Estimate by 12.9%. Revenues of $2.82 billion surpassed the consensus mark by 3.9%.The company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quest Diagnostics reported first-quarter 2020 adjusted EPS of 94 cents, surpassing the Zacks Consensus Estimate by 13.3%. Revenues of $1.82 billion outpaced the consensus mark by 4.6%. Currently, the company carries a Zacks Rank of 2.
Eli Lilly reported first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
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Patterson Companies (PDCO) Q4 Earnings Top Estimates, Up Y/Y
Patterson Companies, Inc. (PDCO - Free Report) reported adjusted earnings per share (EPS) of 43 cents in fourth-quarter fiscal 2020, which beat the Zacks Consensus Estimate by 152.9%. Moreover, the bottom line improved 16.2% from the prior-year quarter.
For full-year fiscal 2020, the company reported adjusted EPS of $1.55, up 10.7% from the prior-year period. The figure surpassed the consensus mark by 20.2%.
Revenue Details
Net sales in the quarter were $1.29 billion, outpacing the Zacks Consensus Estimate by 1.9%. However, the top line declined 10.5% year over year.
For full-year fiscal 2020, the company delivered revenues of $5.49 billion, down 1.5% from fiscal 2019. Nonetheless, the figure surpassed the Zacks Consensus Estimate by 0.4%.
Patterson Companies, Inc. Price, Consensus and EPS Surprise
Patterson Companies, Inc. price-consensus-eps-surprise-chart | Patterson Companies, Inc. Quote
Segmental Analysis
The company currently distributes products through subsidiaries Patterson Dental and Patterson Animal Health.
Dental Segment
This segment provides a complete range of consumable dental products, equipment, software, turnkey digital solutions and value-added services to dentists, and laboratories throughout North America.
In the fiscal fourth quarter, dental sales fell 27.3% year over year to $409.6 million.
Dental Consumable
Sales in the sub-segment totaled $230.5 million, down 26.1% year over year.
Dental Equipment & Software
Sales in the segment plunged 36.5% on a year-over-year basis to $110.8 million.
Other
This segment comprises technical service, parts and labor, software support services and office supplies. Sales at the segment declined 11.2% on a year-over-year basis to $68.3 million.
Animal Health Segment
This segment is a leading distributor of veterinary supplies to clinics, public and private institutions and shelters across the United States.
In the fiscal fourth quarter, the segment sales declined 1.5% on a year-over-year basis to $853.2 million.
Corporate
Sales at the segment were $23.6 million, which increased a whopping 246.5% from $6.8 million in the year-ago quarter.
Margin Analysis
Gross profit in the reported quarter was $294 million, down 5.9% year over year. As a percentage of revenues, gross margin of 22.9% expanded 110 basis points (bps) on a year-over-year basis.
Operating expenses in the reported quarter totaled $233.4 million, declining 12.2% from the year-ago quarter.
The company reported operating loss of $614.5 million against the year-ago quarter’s operating income of $46.6 million.
Fiscal 2021 Guidance
Due to the ongoing disruption of North American and international market conditions on account of the COVID-19 pandemic, the company is unable to predict the economic effects and related government actions resulting from the same. Therefore, Patterson Companies has decided not to issue fiscal 2021 earnings guidance at this time.
Our Take
Patterson Companies ended fourth-quarter fiscal 2020 on a strong note, wherein both earnings and revenues beat the consensus mark. The company witnessed expansion in gross margin in the quarter under review.
However, the company’s Dental and Animal Health segments displayed a dismal performance in the reported quarter.
Nonetheless, a broad spectrum of products cushions the company against economic downturns in the MedTech space. We believe that a diverse product portfolio, strong veterinary business prospects, accretive acquisitions and strategic partnerships are key catalysts.
Zacks Rank
Patterson Companies carries a Zacks Rank #4 (Sell).
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have already announced their quarterly results include Laboratory Corporation of America Holdings (LH - Free Report) , Quest Diagnostics Incorporated (DGX - Free Report) and Eli Lilly and Company (LLY - Free Report) .
LabCorp reported first-quarter 2020 adjusted EPS of $2.37, beating the Zacks Consensus Estimate by 12.9%. Revenues of $2.82 billion surpassed the consensus mark by 3.9%.The company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quest Diagnostics reported first-quarter 2020 adjusted EPS of 94 cents, surpassing the Zacks Consensus Estimate by 13.3%. Revenues of $1.82 billion outpaced the consensus mark by 4.6%. Currently, the company carries a Zacks Rank of 2.
Eli Lilly reported first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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