The 10-second takeaway
For the quarter ended Oct. 27 (Q2), Patterson Companies missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share increased.
Margins shrank across the board.
Patterson Companies reported revenue of $867.2 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $895.5 million on the same basis. GAAP reported sales were 1.2% higher than the prior-year quarter's $856.9 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 $0.46. The eight earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. GAAP EPS of $0.44 for Q2 were 2.3% higher than the prior-year quarter's $0.43 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 32.4%, 40 basis points worse than the prior-year quarter. Operating margin was 9.0%, 70 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 $920.4 million.
Next year's average estimate for revenue is $3.67 billion.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 96 members out of 112 rating the stock outperform, and 16 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 hold, with an average price target of $35.50.
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