Patterson Companies Q1 Profit Rises - Update

(RTTNews) - Patterson Companies Inc. (PDCO), a distributor of dental, veterinary and rehabilitation supplies, Thursday reported an increase in profit for the first quarter, as revenues surged 20 percent reflecting the acquisition of National Veterinary Services. Earnings for the quarter were in line with Wall Street estimates, while revenues surpassed expectations. Moving ahead, the company maintained its full-year 2015 outlook.

St. Paul, Minnesota-based Patterson's first-quarter profit rose to $50.3 million or $0.50 per share from $45.9 million or $0.45 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.50 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the first quarter grew 20 percent to $1.06 billion from $880.1 million a year ago. Analysts had a consensus revenue estimate of $1.04 billion for the quarter.

Patterson said the acquisition of National Veterinary Services Ltd., a unit of Dechra Pharmaceuticals PLC (DPH.L), contributed $173.6 million to sales and $0.02 per share to earnings.

"We are pleased with the trends we saw in the fiscal first quarter and the business generally performed within our expectations," said CEO Scott Anderson.

Moving ahead, the company maintained its fiscal year 2015 earnings guidance of $2.20 to $2.30 per share. Analysts currently project annual earnings of $2.26 per share for the year.

"We believe that the recent change announced by Idexx Laboratories Inc., to move to a direct sales and distribution model in the veterinary market effective January 1, 2015, does not materially impact our fiscal 2015 outlook and we expect to mitigate the potential reduction in net income from this move," Anderson concluded.

PDCO is currently trading at $40.93, up $0.83 or 2.07%, on the Nasdaq.