U.S. markets closed
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • Dow 30

    31,500.68
    +823.32 (+2.68%)
     
  • Nasdaq

    11,607.62
    +375.43 (+3.34%)
     
  • Russell 2000

    1,765.74
    +54.06 (+3.16%)
     
  • Crude Oil

    107.06
    +2.79 (+2.68%)
     
  • Gold

    1,828.10
    -1.70 (-0.09%)
     
  • Silver

    21.13
    +0.09 (+0.42%)
     
  • EUR/USD

    1.0559
    +0.0034 (+0.33%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • GBP/USD

    1.2270
    +0.0009 (+0.07%)
     
  • USD/JPY

    135.2100
    +0.2770 (+0.21%)
     
  • BTC-USD

    21,490.84
    +312.19 (+1.47%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,491.97
    +320.72 (+1.23%)
     

What's in Store for Patterson Companies' (PDCO) Q3 Earnings?

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

Patterson Companies, Inc. PDCO is scheduled to release third-quarter fiscal 2022 results on Feb 2, before the opening bell.

The company delivered an earnings surprise of 16% in the last reported quarter. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 3.7%.

Q3 Estimates

For the quarter to be reported, the Zacks Consensus Estimate for the company’s revenues is pegged at $1.63 billion, suggesting growth of 4.8% from the year-ago reported number. The same for adjusted earnings per share (EPS) stands at 50 cents, indicating a decline of 13.8% from the prior-year quarter.

Factors to Note

Being one of the leading distributors of consumable products and dental technology, Patterson Companies’ Dental arm has been one of the key contributors to its top line. However, it is important to mention here that the COVID-19 resurgence might have impacted the company’s Dental business in third-quarter fiscal 2022.

Nonetheless, according to management, in the second-quarter fiscal 2022, sales at this segment dipped 1.5% year over year but surpassed its own expectations for the quarter. The figure also exhibited an increase of 10% compared with the pre-pandemic period (two years back). Throughout the Dental segment, the company’s field sales, service and support teams remain committed toward delivering value to its customers and business partners, thereby driving solid operational excellence. This trend is likely to have continued in the to-be-reported quarter.

Patterson Companies, Inc. Price and EPS Surprise

Patterson Companies, Inc. Price and EPS Surprise
Patterson Companies, Inc. Price and EPS Surprise

Patterson Companies, Inc. price-eps-surprise | Patterson Companies, Inc. Quote

With regard to Animal Health business in the fiscal second quarter of 2022, sales at this segment grew 12.4% on a year-over-year basis. According to management, this was attributable to solid internal sales growth and increase in internal sales in Companion Animal business as well as production animal business. The segment is likely to have benefited from the recently closed (June 2021) buyout of Miller Vet as this transaction might have expanded its core sales reach and driven synergies.

The segment has been gaining from the rise in pet adoptions and increased attention to pets. Per the second-quarter fiscal 2022 earnings call, the Companion Animal market continues to show signs of prosperity and is poised to gain from the long-term tailwinds of higher pet ownership and pet expenditure, and the faster-than-expected production animal market recovery. Consequently, this trend is likely to get reflected in the fiscal third-quarter results.

Apart from this, the company is of the opinion that the Animal Health business is well-poised to drive the top line and thereby, margins in the near term.

Robust demand for the segment’s products like x-ray film, restorative materials, sterilization products, hand instruments and advanced dental equipment may have contributed to the company’s performance in the quarter to be reported.

However, intense competition across most of the product lines might have weighed on the company’s overall performance in the fiscal third quarter.

What the Zacks Model Unveils

Per our proven model, 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. This is not the case here as you will see.

Earnings ESP: Patterson Companies has an Earnings ESP of 0.00%. 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 #3.

Peer Releases

Some better-ranked stocks in the broader medical space that have announced quarterly results are Henry Schein, Inc. HSIC, Quidel Corporation QDEL and Bio-Rad Laboratories, Inc. BIO.

Henry Schein, carrying a Zacks Rank #2, reported fourth-quarter 2021 adjusted earnings of $1.07 per share, which beat the Zacks Consensus Estimate by 18.9%. Revenues of $3.33 billion outpaced the consensus mark by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Henry Schein has an estimated long-term growth rate of 11.8%. HSIC surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.5%.

Quidel reported fourth-quarter 2021 adjusted EPS of $7.29, which surpassed the Zacks Consensus Estimate by 49.1%. Fourth-quarter revenues of $636.9 million outpaced the Zacks Consensus Estimate by 0.3%. It currently sports a Zacks Rank #1.

Quidel’s earnings yield of 8.4% compares favorably with the industry’s (0.7%). QDEL surpassed earnings estimates in two of the trailing four quarters and missed twice, the average surprise being 129.4%.

Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. Fourth-quarter revenues of $732.8 million outpaced the Zacks Consensus Estimate by 0.5%. It currently carries a Zacks Rank #2.

Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in each of the trailing four quarters, the average surprise being 66.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Henry Schein, Inc. (HSIC) : Free Stock Analysis Report

Patterson Companies, Inc. (PDCO) : Free Stock Analysis Report

BioRad Laboratories, Inc. (BIO) : Free Stock Analysis Report

Quidel Corporation (QDEL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research