Patterson Companies Q2 Profit Up 28%, Results Beat View; Reaffirms Outlook

(RTTNews) - Patterson Companies Inc. (PDCO) a distributor of dental, veterinary and rehabilitation supplies, on Thursday reported a 28 percent increase in profit for the second quarter from last year, reflecting double-digit growth in revenues and almost flat operating expenses.

Both revenue and adjusted earnings per share for the quarter beat analysts' estimates. Looking ahead, the company reiterated its earnings outlook for fiscal 2015.

Scott Anderson, chairman and chief executive officer said, "Patterson Companies produced double-digit sales growth in the fiscal second quarter and we are pleased with the performance across all three of our businesses. During the quarter, we saw the scale and leverage of the company's business model provide the platform for us to focus on our customers and exceed their expectations."

St. Paul, Minnesota-based Patterson's net income for the second quarter was $53.78 million or $0.54 per share, up from $42.03 million or $0.41 per share in the year-ago period. The prior-year quarter's results included restructuring costs of $6.65 million or $0.07 per share.

Excluding this, adjusted earnings for the latest quarter were $0.54 per share, compared to $0.48 per share in the year-ago period. On average, thirteen analysts polled by Thomson Reuters expected the company to report earnings of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 11 percent to $1.10 billion from $998.83 million in the year-earlier period. Wall Street expected revenues of $1.05 billion for the quarter.

Organic sales for the quarter rose more than 7 percent, after excluding the incremental impact of the National Veterinary Services Limited or NVS acquisition and the Medical unit restructuring, which both occurred in the prior fiscal year.

Operating expenses for the quarter edged up slightly from last year to $214.60 million.

Sales for Patterson Dental, Patterson's largest business that accounts for 55 percent of total sales, increased 7 percent from the year-earlier period to $601.75 million.

Sales for Patterson Veterinary increased 22 percent from the prior year period to $376.47 million. U.S. sales were up 6.4 percent from the prior year, to $202.5 million.

Sales for Patterson Medical, the rehabilitation supply and equipment business, increased nearly 2 percent to $125.11 million, after excluding the impact of the fiscal 2014 planned divestiture of certain non-core assets. Consolidated sales of Patterson Medical currently represent about 11 percent of total company sales.

Looking ahead to fiscal 2015, Patterson Companies reiterated its earnings guidance in a range of $2.20 to $2.30 per share. Analysts project annual earnings per share of $2.26.

PDCO is trading at $47.23, up $0.88 or 1.9 percent on a volume of 41,206 shares.