What happened
Shares of Patterson Companies (PDCO -0.12%) were up 14.7% Wednesday afternoon after rising as much as 28.3%, hitting a 52-week high of $32.82. The healthcare company, which makes products and services for the dental and animal health markets, reported quarterly earnings and annual earnings. The stock is up more than 16% so far this year.
So what
Patterson reported fiscal 2023 year-end and fourth-quarter numbers before the markets opened on Wednesday. Fourth-quarter revenue was listed as $1.7 billion, up 5%, and earnings per share (EPS) of $0.17 represented a gain of 18% over the same period last year.
The company operates an animal health segment and a dental health segment. In the fourth quarter, dental health, the smaller of the two segments, reported an 8% sales gain year over year, to $683.5 million. Animal health revenue came in at $1.03 billion, up 3.2% from the prior-year period.
Full-year revenue was $6.47 billion, down from $6.49 billion in fiscal 2022, but full-year EPS of $2.12 was up 7%. The company said it expects EPS between $2.14 and $2.24 in fiscal 2024.
Now what
Patterson has added to its top and bottom lines with smart acquisitions over the past couple of years. In January, it said it had completed the purchase of the assets of Relief Services for Veterinary Practitioners, as well as Animal Care Technologies.
Patterson is a good dividend stock, too. Even though its quarterly dividend has been set at $0.26 since 2017, the yield is 3.2%. Considering the company's strong gains, there appears to be room for a dividend raise as the payout ratio is only 33.7%.
