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Patterson Companies posts disappointing Q1 results, reaffirms full-year outlook

EditorRachael Rajan
Published 08/28/2024, 07:10 PM
© Reuters.
PDCO
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ST. PAUL, Minn. - Patterson Companies, Inc. (NASDAQ:PDCO) reported first quarter fiscal 2025 results that fell short of analyst expectations, as the company faced headwinds from a cybersecurity attack and challenging macroeconomic conditions.

The dental and animal health products distributor posted adjusted earnings per share of $0.24, missing the analyst consensus of $0.33. Revenue declined 2.2% YoY to $1.54 billion, below estimates of $1.59 billion.

"Our first quarter results fell short of our expectations, primarily due to the greater than anticipated impact of the Change Healthcare (NASDAQ:CHNG) cybersecurity attack on the value-added services category in our dental segment, along with lower sales in our companion animal business," said CEO Don Zurbay.

Internal sales, which exclude currency effects, decreased 2.8% YoY. The Dental segment saw internal sales decline 2.8%, while Animal Health internal sales also fell 2.8%.

Despite the weak quarter, Patterson reaffirmed its fiscal 2025 adjusted EPS guidance range of $2.33 to $2.43, compared to the $2.36 analyst consensus.

The company returned $73.3 million to shareholders through dividends and share repurchases during the quarter.

"We are taking dedicated cost and management actions across Patterson to deliver on our financial plan for fiscal 2025," Zurbay added, noting the company is maintaining its strategic focus on supporting customers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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