On Aug 13, we have updated our research report on
Patterson Companies Inc.
). The St. Paul, MN-based distributor of dental, companion-pet
veterinarian and rehabilitation supplies continues to face
weaknesses due to intense competition, unfavorable currency
fluctuations and an uncertain macroeconomic environment.
Patterson Companies' adjusted earnings per share in the
fourth-quarter of fiscal 2014 went down by a penny to 61 cents from
the year-ago quarter and missed the Zacks Consensus Estimate by 5
cents. Adjusted net earnings fell 3.4% to $61.4 million from $63.6
million in the year-ago quarter.
Revenues in the quarter grew 14.2% to $1,102.1 million, but fell
short of the Zacks Consensus Estimate of $1,123 million.
Adjusted gross margin fell 130 basis points (bps) to 32.3% in the
quarter from 33.6% a year ago. Adjusted operating margin also
dipped 70 bps to 10.1% from 10.8% in the fiscal 2014 quarter.
Inclement weather, tough macroeconomic environment and unfavorable
currency fluctuations were attributable for disappointing earnings
and margins during the quarter.
Patterson Companies faces significant competition. The U.S. dental
products distribution industry is highly competitive and consists
principally of national, regional and local full-service and
Further, Patterson Companies has a significant key supplier
concentration. The company's top 10 supply vendors account for more
than 40% of its cost of dental products sold in a fiscal year.
Currently, Patterson Companies carries a Zacks Rank #4 (Sell). The
company will release its fiscal 2015-first quarter results on Aug
21 before the opening bell.
Some better-ranked stocks from the medical/dental supplies industry
include McKesson Corp. (
) and from the medical products industry include ICU Medical, Inc.
) and Symmetry Medical, Inc. (
). ICU Medical sports a Zacks Rank #1 (Strong Buy), while both
McKesson and Symmetry Medical carry a Zacks Rank #2 (Buy).
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PATTERSON COS (PDCO): Free Stock Analysis
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SYMMETRY MEDICL (SMA): Free Stock Analysis
ICU MEDICAL INC (ICUI): Free Stock Analysis
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