Patterson Companies Inc.
) is set to report its fourth-quarter fiscal 2013 results before
the opening bell on Thursday, May 23. Let us 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 adjusted
earnings of 52 cents, which was in line with the Zacks Consensus
Estimate. Moderate sales growth was dampened by contraction
in operating margin. Moreover, the business failed to take
advantage of the tailwind in the dental market due to internal
Factors to Consider this Quarter
Patterson provides a wide range of consumables, equipment and
software, and value-added services to its customers. The
performance of the veterinary business is crucial for top-line
growth, as it is the only segment growing at a healthy
double-digit rate. Moreover, the alliance with
Sirona Dental Systems
) should bolster Patterson Dental's leading position in the North
American dental distribution business.
However, we are cognizant regarding the ongoing difficulties in
the global dental market as well as tough competition from its
peers such as
). Softness in the medical and the high-margin dental consumables
businesses along with internal operational issues are also causes
Our proven model does not conclusively show that Patterson is
likely to beat earnings estimate 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 62 cents, while the Zacks
Consensus Estimate is pegged at 62 cents. This comes to a
difference of 0.00%.
Zacks Rank #4 (Sell)
: Patterson's Zacks Rank #4 (Sell) lowers the predictive power of
ESP. The Zacks Rank #4 together with 0.00% earnings ESP makes
surprise prediction difficult.
Other Stocks to Consider
Another company from the medical sector you may want to consider
as our model shows it has the right ingredients to post an
earnings beat this quarter:
The Cooper Companies Inc.
), Earnings ESP of +2.94% and a Zacks Rank #2 (Buy).
COOPER COS (COO): Free Stock Analysis Report
HENRY SCHEIN IN (HSIC): Free Stock Analysis
PATTERSON COS (PDCO): Free Stock Analysis
SIRONA DENTAL (SIRO): Free Stock Analysis
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