Patterson Companies Inc.
), a Minnesota-based distributor of dental, veterinarian and
rehabilitation medical supplies, has collaborated with SumTotal
Systems, LLC, a provider of integrated Human Resource (HR)
solutions. Patterson will be utilizing the latter's SumTotal
Talent Expansion applications to build upon its mobile and social
Given the need of the hour to fight strong competition, Patterson
recognized the necessity of adding value to its existing
workforce, to drive both personal and professional excellence.
PDCO's decentralized 7,000-strong workforce is spread across the
U.S., Canada, U.K., Australia, France and China. Therefore, it
became imperative for management to keep their employees updated
with the latest HR technologies.
Talent Expansion is a learning-focused approach to HR technology
that assists employees to expand their talent real time. We
believe SumTotal's interactive, intuitive user interface and
robust reporting capabilities should help develop the hidden
potential within PDCO's workforce.
Patterson currently has a Zacks Rank #3 (Hold). The company
reported a disappointing fiscal 2014 first-quarter results,
reflecting a challenging macro environment. PDCO's earnings per
share (EPS) of 45 cents in the reported quarter remained flat
year over year and missed the Zacks Consensus Estimate by 3
Moreover, revenues dropped marginally by 1% to $880.1 million
from $889.2 million reported in the first quarter of fiscal 2013.
Revenues were considerably lower than the Zacks Consensus
Estimate of $918 million.
The core dental business also faced difficult year-over-year
comparisons in the quarter. However, management is confident that
the business will deliver incremental returns for the rest of
fiscal 2014 on the back of its new product CEREC Omnicam, and
Despite these shortcomings, we note that Patterson's Veterinary
business is growing modestly, reflecting a tailwind in the
underlying market. Moreover, the Medical business is also geared
to improve in the long-term, reaping the benefits of PDCO's
advanced products portfolio and underlying favorable
While we choose to remain on the sidelines regarding PDCO,
medical/dental supplies companies that are worth considering
STRAUMANN HLD N AKT
MWI Veterinary Supply
). SAUHF carries a Zacks Rank #1 (Strong Buy), while MWIV and
ALGN carry a Zacks Rank #2 (Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis
MWI VET SUPPLY (MWIV): Free Stock Analysis
PATTERSON COS (PDCO): Free Stock Analysis
STRAUMANN (SAUHF): Get Free Report
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