The 10-second takeaway
For the quarter ended Jan. 28 (Q3), Patterson Companies beat expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.
Margins shrank across the board.
Patterson Companies reported revenue of $895.0 million. The 14 analysts polled by S&P Capital IQ predicted revenue of $864.2 million on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $824.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.50 per share. GAAP EPS of $0.50 for Q3 were 6.4% higher than the prior-year quarter's $0.47 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.3%, 180 basis points worse than the prior-year quarter. Operating margin was 10.0%, 120 basis points worse than the prior-year quarter. Net margin was 5.9%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $918.6 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $3.52 billion. The average EPS estimate is $1.91.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 99 members rating the stock outperform and 15 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Patterson Companies a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Patterson Companies is hold, with an average price target of $33.68.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.