The 10-second takeaway
For the quarter ended Jan. 26 (Q3), Patterson Companies met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share expanded.
Gross margins expanded, operating margins dropped, net margins were steady.
Patterson Companies logged revenue of $915.9 million. The 14 analysts polled by S&P Capital IQ predicted net sales of $908.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.52. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.52 per share. GAAP EPS of $0.52 for Q3 were 4.0% higher than the prior-year quarter's $0.50 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 32.8%, 50 basis points better than the prior-year quarter. Operating margin was 9.8%, 20 basis points worse than the prior-year quarter. Net margin was 5.9%, much about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $974.4 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $3.64 billion. The average EPS estimate is $2.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 101 members out of 116 rating the stock outperform, and 15 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 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 $35.46.
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