Patterson Companies Inc.
) is set to report its third-quarter fiscal 2013 results before
the opening bell on Thursday, Feb 21. Let's see how things are
shaping up prior to the announcement.
In the last quarter, the Minn.-based distributor of dental,
veterinarian and rehabilitation medical supplies posted a
negative earnings surprise of 8.33%. Net income was impacted by
unexpected lower sales of dental equipment and an incremental
interest expense of $3.2 million associated with the company's
debt issuance in the third quarter of 2012.
Factors to Consider this Quarter
We believe that Patterson's Veterinary business will maintain
its growth momentum in this quarter. We are also upbeat regarding
the alliance with
Sirona Dental Systems Inc.
), which is likely to strengthen Patterson Dental's leading
position in the North American dental distribution business.
However, the company remains affected by tough macroeconomic
issues in North America and international markets. Moreover, we
wait to see how the company is tackling its internal operational
Our proven model does not conclusively show that Patterson is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not
the case here, as you will see below.
Zacks Earnings ESP
: The Most Accurate Estimate stands at 52 cents, while the Zacks
Consensus Estimate is also pegged at 52 cents. This comes to a
difference of 0.00%.
Zacks Rank #2 (Buy).
Patterson currently carries a Zacks Rank #2 (Buy). The Zacks Rank
#2 together with 0.00% earnings ESP makes surprise prediction
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right ingredients to post an earnings
beat in the upcoming quarter:
Medical Action Industries Inc.
), Earnings ESP of +33.33% and Zacks Rank #1 (Strong Buy)
Earnings ESP of +6.45% and Zacks Rank #2 (Buy)
MEDICAL ACTION (MDCI): Free Stock Analysis
PATTERSON COS (PDCO): Free Stock Analysis
SIRONA DENTAL (SIRO): Free Stock Analysis
STERIS CORP (STE): Free Stock Analysis Report
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