Patterson Cos.'s (PDCO) fiscal third-quarter profit rose 6.1%
despite weaker-than-expected revenue as demand from the
dental-equipment maker remains sluggish.
The company, which controls roughly a third of the North
American dental-spending market, has been cutting cost through
company-wide salary reductions and other efforts. A large part of
dental spending is discretionary, in particular cosmetic procedures
such as teeth whitening, while significant work is considered
non-emergency, such as replacing an aging crown.
For the quarter ended Jan. 23, Patterson reported a profit of
$56 million, or 47 cents a share, up from $52.8 million, or 45
cents a share, a year earlier. Revenue rose 1.1% to $820.1
million.
Analysts polled from Thomson Reuters estimated earnings of 47
cents on revenue of $832 million.
Gross margin widened moderately to 33.7% from 33.2% amid the
cost cuts.
Sales of consumable supplies and office products rose 2% and
rose slightly excluding acquisitions and currency changes, the
first such growth in more than a year. Equipment and software
declined 10% while sales at the smaller veterinary unit dropped
5%.
Shares of Patterson, which narrowed its fiscal-year earnings
target, closed Wednesday at $29.62 and were inactive premarket.
-By Jodi Xu, Dow Jones Newswires, jodi.xu@wsj.com;
212-416-3037;