Patterson Cos.'s (PDCO) fiscal first-quarter profit jumped 20%
on widened margins but revenue increased less than expected.
The wholesaler of dental, veterinary and other products has seen
demand for its dental equipment gradually improve. President and
Chief Executive Scott P. Anderson, who replaced James W. Wiltz in
April, noted "strong sales growth of basic dental equipment" such
as cone beam and panoramic imaging systems. He called it a sign
"the dental market is starting to gradually strengthen."
For the quarter ended July 31, Patterson reported a profit of
$53.9 million, or 45 cents a share, up from $45.1 million, or 38
cents a share, a year earlier. Revenue increased 8% to $849.8
million, thanks to the latest quarter being a week longer.
Analysts polled by Thomson Reuters most recently estimated
earnings of 44 cents and $855 million in revenue.
Gross margin widened to 33% from 32.8%.
Patterson's dental-supply business, its largest, reported a 6.2%
revenue increase. But excluding the extra week, consumable dental
supplies and office products sales were little changed. Unadjusted
dental equipment and software sales climbed 4.7%, and Patterson
said it is difficult to provided an adjusted figure for that
operation.
Patterson's much-smaller rehabilitation supply and equipment
operation had unit, posted 17% growth, nearly all due to the extra
week and acquisitions. Veterinary sales were up 6% on the
lengthened quarter.
Shares at Patterson, which reiterated its earnings forecast for
the year, closed at $26.67 Wednesday and were inactive
premarket.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037; jodi.xu@dowjones.com;