Covetrus (CVET) Misses Q4 EPS by 45c, Revenue Beats, Offers Guidance

Covetrus (NASDAQ: CVET) reported Q4 EPS of ($0.33), $0.45 worse than the analyst estimate of $0.12. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $986.26 million.

GUIDANCE:

Covetrus sees FY2020 revenue of $4.025-4.125 billion, versus the consensus of $4.14 billion.

• Covetrus’ fiscal year 2020 financial guidance range is as follows, which assumes a second quarter close for the scil animal care divestiture and the joint venture with Distrivet S.A. and no significant supply chain disruption or economic impact related to the Novel Coronavirus Disease 2019 (COVID-19):
• Net sales of $4.025 billion to $4.125 billion. Embedded in this outlook is pro forma organic net sales growth, a non-GAAP financial metric, of 3% to 5%, current foreign exchange rates, and the impact from announced M&A and divestiture activity in 2019 and 2020; and
• Adjusted EBITDA, a non-GAAP financial metric, of $190 million to $195 million. Based on the estimated timing of the transaction, the divestiture of scil animal care serves as more than a $5 million headwind to year-over-year growth in 2020 as compared to 2019 results. Normalizing for the scil animal care divestiture, adjusted EBITDA is expected to be relatively flat year-over-year.

For earnings history and earnings-related data on Covetrus (CVET) click here.

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