The 10-second takeaway
For the quarter ended July 28 (Q1), Patterson Companies met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Margins shrank across the board.
Patterson Companies booked revenue of $889.2 million. The 12 analysts polled by S&P Capital IQ expected to see revenue of $883.5 million on the same basis. GAAP reported sales were 4.9% higher than the prior-year quarter's $847.4 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 $0.47. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share. GAAP EPS of $0.45 for Q1 were 7.1% higher than the prior-year quarter's $0.42 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 32.1%, 70 basis points worse than the prior-year quarter. Operating margin was 9.3%, 40 basis points worse than the prior-year quarter. Net margin was 5.3%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $893.2 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $3.69 billion. The average EPS estimate is $2.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 98 members out of 113 rating the stock outperform, and 15 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 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 hold, with an average price target of $35.60.
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