U.S. Markets close in 2 hrs 2 mins
  • S&P 500

    4,355.39
    -87.72 (-1.97%)
     
  • Dow 30

    34,311.75
    -557.62 (-1.60%)
     
  • Nasdaq

    14,574.93
    -395.04 (-2.64%)
     
  • Russell 2000

    2,244.72
    -36.28 (-1.59%)
     
  • Crude Oil

    75.15
    -0.30 (-0.40%)
     
  • Gold

    1,736.00
    -16.00 (-0.91%)
     
  • Silver

    22.49
    -0.21 (-0.92%)
     
  • EUR/USD

    1.1684
    -0.0018 (-0.15%)
     
  • 10-Yr Bond

    1.5220
    +0.0380 (+2.56%)
     
  • GBP/USD

    1.3533
    -0.0171 (-1.25%)
     
  • USD/JPY

    111.5190
    +0.5410 (+0.49%)
     
  • BTC-USD

    41,432.44
    -1,600.07 (-3.72%)
     
  • CMC Crypto 200

    1,020.61
    -36.54 (-3.46%)
     
  • FTSE 100

    7,028.10
    -35.30 (-0.50%)
     
  • Nikkei 225

    30,183.96
    -56.10 (-0.19%)
     

Patterson’s 3Q Results Beat The Street Consensus; Shares Dip 7%

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Patterson Cos., a dental and animal health products seller reported better-than-expected fiscal 3Q earnings, driven by higher net sales and improved margins. However, shares closed 6.7% lower on March 3, as the company did not provide 4Q guidance citing the continued uncertainty related to the COVID-19 pandemic.

Patterson (PDCO) reported 3Q adjusted earnings of $0.58 per share that surpassed analysts’ expectations of $0.51 and jumped 23.4% year-over-year. Adjusted net sales of $1.55 billion beat the Street’s estimates of $1.5 billion and increased 6.9% from the year-ago period.

The company’s dental segment reported a 3.6% year-over-year rise in internal sales in the quarter, driven by growth in consumables. Internal sales growth in the animal health segment was 10%. The adjusted operating margin was 4.6%, up 30 basis points.

Patterson CEO Mark Walchirk commented, “Looking ahead, we remain confident about our strengthened position in each of our end markets and in Patterson’s long-term value creation potential.” (See Patterson stock analysis on TipRanks)

Following the fiscal 3Q results, Piper Sandler analyst Jason Bednar increased the stock’s price target to $34 (13% upside potential) from $33 citing “another quarter of solid execution,” which he “identifies as a sixth consecutive quarter of upside compared to consensus revenue and EPS estimates.”

However, Bednar reiterated a Hold rating amid “lingering uncertainty.”

The rest of the Street is sidelined on the stock with a Hold consensus rating based on 1 Buy, 3 Holds, and 1 Sell. The average analyst price target of $33.80 implies about 12% upside potential to current levels. Shares have jumped about 26% over the past year.

According to TipRanks’ Smart Score system, Patterson gets a 5 out of 10, which indicates that the stock is likely to perform in line with market averages.

Related News:
Nektar Posts Better-Than-Feared Quarterly Loss, Misses On Revenues
Domino’s 4Q Results Miss Analysts’ Expectations; Shares Tank 7%
Sage Posts Surprise Quarterly Profit As Sales Surge; Shares Pop 6%

More recent articles from Smarter Analyst: