The 10-second takeaway
For the quarter ended April 27 (Q4), Patterson Companies met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.
Gross margins increased, operating margins contracted, net margins were steady.
Patterson Companies booked revenue of $964.9 million. The 14 analysts polled by S&P Capital IQ predicted sales of $969.5 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 $0.62. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.62 per share. GAAP EPS of $0.62 for Q4 were 5.1% higher than the prior-year quarter's $0.59 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 33.6%, 10 basis points better than the prior-year quarter. Operating margin was 10.8%, 20 basis points worse than the prior-year quarter. Net margin was 6.6%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $923.4 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $3.80 billion. The average EPS estimate is $2.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 97 members out of 112 rating the stock outperform, and 15 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 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 $37.77.
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