Patterson Cos. (PDCO) Reports In-Line Q3 EPS, Revenues Miss; Offers FY19 EPS Guidance Below Consensus

Patterson Cos. (NASDAQ: PDCO) reported Q3 EPS of $0.38, in-line with the analyst estimate of $0.38. Revenue for the quarter came in at $1.396 billion versus the consensus estimate of $1.4 billion.

• Third-quarter reported net sales totaled $1.4 billion, up 1.6 percent.
• Third-quarter GAAP earnings of $0.33 per diluted share.
• Third-quarter adjusted earnings1 of $0.38 per diluted share.
• Dental segment internal sales increased 0.9%.
• Company narrows fiscal 2019 GAAP earnings range to $0.89 to $0.94 per diluted share and adjusted earnings1 range to $1.40 to $1.45 per diluted share.

“We are pleased with our performance during the third quarter. We delivered the third consecutive quarter of year-over-year revenue growth as well as continued, sequential operating margin improvement,” said Mark Walchirk, President and CEO of Patterson Companies. “We continued to execute against our strategic priorities, which resulted in Dental segment revenue growth and solid performance in our Animal Health segment. Our progress throughout fiscal 2019 provides us with confidence that we are taking the right steps to build a stronger Patterson that is well positioned to deliver long-term value.”

GUIDANCE:

Patterson Cos. sees FY2019 EPS of $1.40-$1.45, versus the consensus of $1.56.

Patterson Companies today narrowed its fiscal 2019 earnings guidance, which is provided on both a GAAP and non-GAAP adjusted1 basis:

• GAAP earnings are expected to be in the range of $0.89 to $0.94 per diluted share.
• Non-GAAP adjusted earnings1 are expected to be in the range of $1.40 to $1.45 per diluted share.
• Our non-GAAP adjusted earnings1 guidance excludes the after-tax impact of:
  • Deal amortization expenses of approximately $29.6 million ($0.32 per diluted share).
  • Legal reserve costs of approximately $20.7 million ($0.22 per diluted share).
  • A benefit related to the 2017 Tax Act of $2.7 million ($0.03 per diluted share).

For earnings history and earnings-related data on Patterson Cos. (PDCO) click here.

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