UPDATE: Patterson Cos. (PDCO) Tops Q3 EPS by 11c, Revenues Beat; Raises FY20 EPS Guidance Above Consensus
Patterson Cos. (NASDAQ: PDCO) reported Q3 EPS of $0.47, $0.11 better than the analyst estimate of $0.36. Revenue for the quarter came in at $1.46 billion versus the consensus estimate of $1.42 billion.
- Third-quarter reported net sales increased 4.3 percent year-over-year to $1.46 billion; internal sales also increased 4.3 percent.
- Adjusted operating margin1 increased 40 bps to 4.3 percent.
- Dental segment internal sales increased 8.0 percent driven by growth in consumables, equipment and value-added services.
- Animal Health segment internal sales increased 1.3 percent.
- Delivered third-quarter GAAP earnings of $0.24 per diluted share and adjusted earnings1 of $0.47 per diluted share.
- Raises fiscal 2020 GAAP earnings guidance range to $0.49 to $0.54 per diluted share, and adjusted earnings1 guidance range to $1.50 to $1.55 per diluted share.
“Patterson’s focused and disciplined approach to accelerate performance drove both improved top-line growth and margin expansion during the third quarter,” said Mark Walchirk, President and CEO of Patterson Companies. “In our Dental segment, we achieved positive consumables growth and continued to generate strong sales growth in equipment and value-added services. In Animal Health, we delivered continued growth in our companion business and trends in our production business improved despite end market challenges. As a result of our improved performance, we are raising our fiscal 2020 adjusted earnings guidance range to $1.50 to $1.55 from its prior range of $1.36 to $1.46 per diluted share.”
GUIDANCE:
Patterson Cos. sees FY2020 EPS of $1.50-$1.55, versus the consensus of $1.41.
Patterson Companies today updated its fiscal 2020 earnings guidance, which is provided on both a GAAP and non-GAAP adjusted1 basis:
- GAAP earnings are now expected to be in the range of $0.49 to $0.54 per diluted share.
- Non-GAAP adjusted earnings1 are now expected to be in the range of $1.50 to $1.55 per diluted share.
- Ournon-GAAP adjusted earnings1 guidance excludes the after-tax impact of the following approximate amounts:
- Deal amortization costs of $28.2 million ($0.30 per diluted share).
- Integration and business restructuring expenses of $12.4 million ($0.13 per diluted share).
- Legal expenses of $74.1 million ($0.78 per diluted share).
- Accelerated debt-related costs of $7.5 million ($0.08 per diluted share).
- Investment gain of $26.5 million ($0.28 per diluted share).
For earnings history and earnings-related data on Patterson Cos. (PDCO) click here.