Patterson Cos.'s (PDCO) fiscal fourth-quarter earnings rose 14%
as the wholesaler of dental, veterinary and other products saw its
sales boosted by foreign-exchange fluctuations and growth at its
medical-rehabilitation segment.
The company's new president and chief executive, Scott P.
Anderson, said, "We believe the dental market is stabilizing, and
we are encouraged by some preliminary indications that the market
may be starting to strengthen." Anderson succeeded James W. Wiltz,
who retired last month.
Sales at Patterson's consumables business rose for a second-
straight quarter after turning up in the prior period for the first
time in more than a year. Sales of higher-ticket items remained
weak. Dental practitioners have been holding off on big purchases
as consumers forgo or delay optional procedures.
For the quarter ended April 24, Patterson reported a profit of
$61.8 million, or 52 cents a share, up from $54 million, or 46
cents, a year earlier. Revenue increased 4% to $812.8 million, but
climbed just 1% excluding currency fluctuations and
acquisitions.
Analysts polled by Thomson Reuters most recently forecast
earnings of 50 cents on revenue of $815 million.
Gross margin rose to 35.4% from 34.5%.
The company's dental-supply business, its largest, reported 3%
sales growth as consumable dental supplies and office products
sales increased 2%, mostly on currency impacts, and dental
equipment and software sales edged down 0.4%.
However, veterinary sales grew 2% and Patterson's rehabilitation
supply and equipment unit posted 4% growth.
For the new fiscal year, the company projected earnings of $1.89
to $1.99, while analysts forecast $1.94.
Shares closed Thursday at $29.92 and were inactive
premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com