Patterson Companies, Inc. PDCO is scheduled to release second-quarter fiscal 2022 results on Dec 1, before the opening bell.
The company delivered an earnings surprise of 13.2% 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 16.1%.
For the quarter to be reported, the Zacks Consensus Estimate for the company’s revenues is pegged at $1.58 billion, suggesting growth of 1.9% from the year-ago reported number. The same for adjusted earnings per share (EPS) stands at 50 cents, indicating a decline of 20.6% 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.
In the first-quarter fiscal 2022, the segment surged 41% year over year, driven by better-than-expected growth in consumables, equipment and software, and value-added service categories. Uptick in internal sales included robust growth in consumables, and equipment and software. This momentum is likely to have continued in the to-be-reported quarter as well.
With regard to Animal Health business in the fiscal first quarter of 2022, sales at this segment grew 23.5% 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. The segment benefited from the recently closed (June 2021) buyout of Miller Vet as this transaction is likely to have expanded its core sales reach and driven synergies.
Patterson Companies, Inc. Price and EPS Surprise
Patterson Companies, Inc. price-eps-surprise | Patterson Companies, Inc. Quote
The segment has been gaining from the rise in pet adoptions and increased attention to pets. Per the first-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 second-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 second 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.
Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. TMO, Medpace Holdings, Inc. MEDP, and AngioDynamics, Inc. ANGO.
Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the consensus mark by 12%. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher has an estimated long-term growth rate of 14%. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%.
Medpace, currently carrying a Zacks Rank #1, reported third-quarter 2021 adjusted EPS of $1.29, which surpassed the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%.
Medpace has an estimated long-term growth rate of 16.4%. The company outpaced earnings estimates in each of the trailing four quarters, the average surprise being 11.9%.
AngioDynamics reported first-quarter fiscal 2022 loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%. Presently, the company sports a Zacks Rank #1.
AngioDynamics’ earnings yield of 0.1% compares favorably with the industry’s (2.8%). The company surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 125.6%.
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
AngioDynamics, Inc. (ANGO) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Patterson Companies, Inc. (PDCO) : Free Stock Analysis Report
Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research