The 10-second takeaway
For the quarter ended April 28 (Q4), Patterson Companies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Margins contracted across the board.
Patterson Companies reported revenue of $936.3 million. The 12 analysts polled by S&P Capital IQ expected revenue of $916.7 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $883.8 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 $0.61. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.56 per share. GAAP EPS of $0.58 for Q4 were 9.4% higher than the prior-year quarter's $0.53 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 33.5%, 90 basis points worse than the prior-year quarter. Operating margin was 11.0%, 80 basis points worse than the prior-year quarter. Net margin was 6.6%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $888.9 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $3.69 billion. The average EPS estimate is $2.13.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 99 members out of 113 rating the stock outperform, and 14 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Patterson Companies a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Patterson Companies is outperform, with an average price target of $35.00.
If you're interested in health care stocks like Patterson Companies, you might want to expand your horizons to find maximum returns. Follow the money and meet a prime candidate for major returns in our new report, "Discover the Next Rule-Breaking Multibagger." Click here for instant access to this free report.
- Add Patterson Companies to My Watchlist.
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.