Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Patterson Companies (PDCO) Earnings Beat Estimates in Q4

Patterson Companies Inc. PDCO reported fourth-quarter fiscal 2017 adjusted earnings of 69 cents per share from continuing operations, which outpaced the Zacks Consensus Estimate of 64 cents. The figure, however, came lower than the year-ago quarterly figure of 77 cents.

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.

Stock Performance

The price performance of the stock has been unfavorable over the last three months. Patterson Companies shed 1.24%, comparing unfavorably versus the Zacks classified Medical - Dental Supplies sub-industry’s gain of almost 5.46%.
 

Patterson Companies, Inc. Price, Consensus and EPS Surprise

 

Patterson Companies, Inc. Price, Consensus and EPS Surprise | Patterson Companies, Inc. Quote

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.

Zacks Rank & Key Picks

Patterson Companies currently has a Zacks Rank #4 (Sell).

Better-ranked stocks in the broader medical sector are Luminex Corp. LMNX, Inogen, Inc. INGN and Edwards Lifesciences, Inc. EW. Notably, Luminex and Inogen sport a Zacks Rank #1 (Strong Buy), while Edwards Lifesciences carries a Zacks Rank #2 (Buy). You can see https://www.zacks.com/stocks/buy-list/?ADID=zp_1link&ICI... _1link">the complete list of today’s Zacks #1 Rank stocks here.

Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock roughly added 7.0% over the last three months.

Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 82%.

Edwards Lifesciences has an expected long-term adjusted earnings growth of almost 16% (last 3–5 years of actual earnings). The stock added roughly 14.8% over the last three months.

Looking for Ideas with Even Greater Upside?

Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>


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
 
Luminex Corporation (LMNX): Free Stock Analysis Report
 
Inogen, Inc (INGN): Free Stock Analysis Report
 
Edwards Lifesciences Corporation (EW): Free Stock Analysis Report
 
Patterson Companies, Inc. (PDCO): Free Stock Analysis Report
 
To read this article on Zacks.com click here.