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Broad Portfolio to Aid Patterson Companies' (PDCO) Q1 Earnings
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Patterson Companies, Inc. (PDCO - Free Report) is set to release first-quarter fiscal 2025 results on Aug 28, before the opening bell.
The company missed on earnings in the last reported quarter. Its earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and met in one, delivering a negative average surprise of 4.53%.
Q1 Estimates
The Zacks Consensus Estimate for the company’s revenues is pegged at $1.60 billion, up 1.4% year over year.
The consensus mark for adjusted earnings per share is pinned at 32 cents, indicating a 20% decline from the bottom line recorded in the year-ago quarter.
Factors to Note
Patterson Companies reports quarterly results under two segments — Dental and Animal Health. The company is likely to record a year-over-year improvement in revenues for both segments. However, certain sub-segments are projected to have experienced challenging market dynamics.
Consumable to Drive Dental Segment
The company’s Dental segment sales are expected to have been driven by the strong performance of its Consumables business on the back of comprehensive consumables offering in both branded and private label products. Non-infection product portfolio sales improved during the fourth quarter of fiscal 2024. The trend is likely to have continued in the soon-to-be-reported quarter, thereby boosting top-line growth.
However, moderation in equipment spending by industry players might have led to lower equipment sales during the fiscal first quarter. Deflationary impact for certain products is likely to have hurt infection product portfolio sales during the fiscal first quarter.
Meanwhile, PDCO continues to focus on boosting its equipment sales. The company inked a deal with Convergent Dental, gaining exclusive North American distributor rights for Solea Laser, the only CO2 laser cleared by the FDA for all tissue indications in January. It may provide an update on the performance of Solea Laser on its first-quarter earnings call.
Production Animal Sales to Aid Animal Health
Patterson Companies’ Animal health segment is likely to have benefited from continued strong momentum in its production animal business, driven by its omnichannel presence and broad portfolio of offerings across animal species. The business performance is likely to have gained from the continued addition of new customers.
However, the strong performance of the production animal business is likely to have been partially offset by the weak performance of the companion animal business, reflecting moderation in veterinary clinic traffic.
Meanwhile, PDCO’s strategy to focus on more profitable business might have led to lower top-line growth. However, the strategy is likely to have boosted profit margins during the soon-to-be-reported quarter.
Both segments of Patterson Companies are likely to have continued to benefit from its growing portfolio of value-added services. Although sales from value-added services declined during the fourth quarter, these services aid in retaining existing customers and driving new customer additions. The software and services are higher-margin products, thereby enhancing margins for the business.
PDCO added a few services during the past few months, including Patterson CarePay+ and the integration of Second Opinion into Patterson's Eaglesoft practice management software catering to its Dental customers. It also announced new integration features within Weave and the Patterson Dental practice management software solutions, Fuse, Eaglesoft and Dolphin Management, improving data exchange among various services.
The company launched Turnkey insights platform, adding another feature to its market-leading enterprise resource planning system for cattle producers. It also entered into a collaboration with LEED for automated veterinary practice tools. These tools are likely to have aided sales during the fiscal first quarter. PDCO may provide updates on the performance of these tools and new additions during the earnings call.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for PDCO this time around. 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 below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% for Patterson Companies.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Patterson Companies currently carries a Zacks Rank #3 (Hold).
The stock has an estimated earnings decline rate of 7.4% for 2024. PAHC’s earnings met estimates in the last reported quarter. It has a trailing four-quarter average negative earnings surprise of 2.30%.
Cellectar Biosciences (CLRB - Free Report) has an Earnings ESP of +23.33% and a Zacks Rank of 3 at present.
CLRB has an estimated earnings growth rate of 39.4% for 2024. The company’s earnings met estimates in the last reported quarter. It delivered a trailing four-quarter average negative earnings surprise of 21.01%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3 at present. MMSI has an estimated earnings growth rate of 10% for 2024.
MMSI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.39%.
Image: Bigstock
Broad Portfolio to Aid Patterson Companies' (PDCO) Q1 Earnings
Patterson Companies, Inc. (PDCO - Free Report) is set to release first-quarter fiscal 2025 results on Aug 28, before the opening bell.
The company missed on earnings in the last reported quarter. Its earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and met in one, delivering a negative average surprise of 4.53%.
Q1 Estimates
The Zacks Consensus Estimate for the company’s revenues is pegged at $1.60 billion, up 1.4% year over year.
The consensus mark for adjusted earnings per share is pinned at 32 cents, indicating a 20% decline from the bottom line recorded in the year-ago quarter.
Factors to Note
Patterson Companies reports quarterly results under two segments — Dental and Animal Health. The company is likely to record a year-over-year improvement in revenues for both segments. However, certain sub-segments are projected to have experienced challenging market dynamics.
Consumable to Drive Dental Segment
The company’s Dental segment sales are expected to have been driven by the strong performance of its Consumables business on the back of comprehensive consumables offering in both branded and private label products. Non-infection product portfolio sales improved during the fourth quarter of fiscal 2024. The trend is likely to have continued in the soon-to-be-reported quarter, thereby boosting top-line growth.
However, moderation in equipment spending by industry players might have led to lower equipment sales during the fiscal first quarter. Deflationary impact for certain products is likely to have hurt infection product portfolio sales during the fiscal first quarter.
Meanwhile, PDCO continues to focus on boosting its equipment sales. The company inked a deal with Convergent Dental, gaining exclusive North American distributor rights for Solea Laser, the only CO2 laser cleared by the FDA for all tissue indications in January. It may provide an update on the performance of Solea Laser on its first-quarter earnings call.
Production Animal Sales to Aid Animal Health
Patterson Companies’ Animal health segment is likely to have benefited from continued strong momentum in its production animal business, driven by its omnichannel presence and broad portfolio of offerings across animal species. The business performance is likely to have gained from the continued addition of new customers.
However, the strong performance of the production animal business is likely to have been partially offset by the weak performance of the companion animal business, reflecting moderation in veterinary clinic traffic.
Meanwhile, PDCO’s strategy to focus on more profitable business might have led to lower top-line growth. However, the strategy is likely to have boosted profit margins during the soon-to-be-reported quarter.
Patterson Companies, Inc. Price and EPS Surprise
Patterson Companies, Inc. price-eps-surprise | Patterson Companies, Inc. Quote
Value-Added Services Continue to Expand
Both segments of Patterson Companies are likely to have continued to benefit from its growing portfolio of value-added services. Although sales from value-added services declined during the fourth quarter, these services aid in retaining existing customers and driving new customer additions. The software and services are higher-margin products, thereby enhancing margins for the business.
PDCO added a few services during the past few months, including Patterson CarePay+ and the integration of Second Opinion into Patterson's Eaglesoft practice management software catering to its Dental customers. It also announced new integration features within Weave and the Patterson Dental practice management software solutions, Fuse, Eaglesoft and Dolphin Management, improving data exchange among various services.
The company launched Turnkey insights platform, adding another feature to its market-leading enterprise resource planning system for cattle producers. It also entered into a collaboration with LEED for automated veterinary practice tools. These tools are likely to have aided sales during the fiscal first quarter. PDCO may provide updates on the performance of these tools and new additions during the earnings call.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for PDCO this time around. 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 below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% for Patterson Companies.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Patterson Companies currently carries a Zacks Rank #3 (Hold).
Stocks Worth a Look
Phibro Animal Health (PAHC - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has an estimated earnings decline rate of 7.4% for 2024. PAHC’s earnings met estimates in the last reported quarter. It has a trailing four-quarter average negative earnings surprise of 2.30%.
Cellectar Biosciences (CLRB - Free Report) has an Earnings ESP of +23.33% and a Zacks Rank of 3 at present.
CLRB has an estimated earnings growth rate of 39.4% for 2024. The company’s earnings met estimates in the last reported quarter. It delivered a trailing four-quarter average negative earnings surprise of 21.01%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3 at present. MMSI has an estimated earnings growth rate of 10% for 2024.
MMSI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.39%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.