Yahoo Finance What's in Store for Patterson Companies (PDCO) in Q4 Earnings?
Patterson Companies, Inc. PDCO is set to release fourth-quarter fiscal 2024 results on Jun 18, before the opening bell.
The company missed on earnings in the last reported quarter. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missed in one and met in the other, delivering an average surprise of 2.02%.
Q4 Estimates
The Zacks Consensus Estimate for the company’s revenues is pegged at $1.72 billion, almost flat year over year.
The consensus mark for adjusted earnings per share is pinned at 83 cents, indicating a 1.2% decline from that recorded in the year-ago quarter.
Factors to Note
As one of the leading distributors of consumable products and dental technology, Patterson Companies’ dental arm is a key contributor to its top line.
Per management, in the third quarter of fiscal 2024, sales in the Dental segment increased 2.5% year over year. The segmental top line reflected steady demand for its consumable portfolio. However, soft demand for certain high-tech dental equipment categories continues to hurt sales. The trend is expected to have continued in the fourth quarter.
In the fiscal third quarter, sales in the Animal Health segment decreased 0.2% on a year-over-year basis. On its third-quarter fiscal 2024 earnings call, the company stated that the production animal business remained strong while the companion animal business reflected moderating veterinary clinic visits. However, long-term tailwinds of higher pet ownership in the past two years are likely to have boosted companion animal business sales. Although sales are expected to have been on the higher side during the soon-to-be-reported quarter, the upcoming results should provide clarity on veterinary clinic visit trends.
Foundation initiatives, including improved mix, exercising expense discipline and leveraging cost structure, might have boosted gross and operating margins.
Moreover, software solutions and equipment service sales are likely to have generated additional revenues. However, ongoing challenges of inflationary trends and higher interest rates might have hurt sales and weighed on the company’s overall quarterly performance.
Patterson Companies, Inc. Price and EPS Surprise
Patterson Companies, Inc. price-eps-surprise | Patterson Companies, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for PDCO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.94% for Patterson Companies.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Patterson Companies currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Henry Schein HSIC has an Earnings ESP of +3.66% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
HSIC has an estimated earnings growth rate of 14.9% for 2024. It delivered a trailing four-quarter average earnings surprise of 2.55%.
Dentsply Sirona XRAY has an Earnings ESP of +4.37% and a Zacks Rank of 3 at present.
The stock has an estimated earnings growth rate of 10.9% for 2024. XRAY’s earnings met estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 5.75%.
Universal Health Services UHS has an Earnings ESP of +2.91% and a Zacks Rank #3 at present. UHS has an estimated earnings growth rate of 30.5% for 2024.
UHS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.12%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Universal Health Services, Inc. (UHS) : Free Stock Analysis Report
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Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
Patterson Companies, Inc. (PDCO) : Free Stock Analysis Report
