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Patterson Companies, Inc. PDCO is expected to release fiscal fourth-quarter 2023 results on Jun 21, before the opening bell.
The company delivered an earnings surprise of 3.33% in the last reported quarter. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an average surprise of 6.22%.
Q4 Estimates
For the to-be-reported quarter, the Zacks Consensus Estimate for the company’s revenues is pegged at $1.66 billion, indicating a 1.1% increase from the prior-year period’s reported figure.
The same for adjusted earnings per share is pinned at 70 cents, indicating a 1.4% decline from that recorded in the year-ago quarter.
Factors to Note
As 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, COVID-19 is likely to have impacted the company’s Dental business in fiscal fourth-quarter 2023.
Per management, in the third quarter of fiscal 2023, sales at this segment decreased 4.4% year over year. The decline was mainly due to moderation of sales of infection control products, which had witnessed strong demand during the pandemic. Moreover, persistent deflationary impact and unfavorable currency movement also hurt top-line growth in the last reported quarter. However, improved demand for digital equipment portfolio and continued momentum in the core equipment category benefited the segment’s revenues. These trends are likely to have continued in the to-be-reported quarter.
In the fiscal third quarter of 2023, sales in the Animal Health segment increased 2.6% on a year-over-year basis. According to management, this was driven by sales growth in both companion animal and production animal. These trends are expected to have continued in the fiscal fourth quarter, boosting segmental sales.
Patterson Companies, Inc. Price and Consensus
Patterson Companies, Inc. price-consensus-chart | Patterson Companies, Inc. Quote
The Animal Health segment has been gaining from growth in pet adoptions and increased attention to pets. On the fiscal third-quarter 2023 earnings call, the companion animal business continued to show signs of prosperity and expected to gain from the long-term tailwinds of higher pet ownership in the past two years. Consequently, this trend is likely to get reflected in the fiscal fourth-quarter results.
Apart from this, the company expects that the Animal Health business is well poised to drive its top line and, thereby, margins in the near term.