Dental and veterinary products firm Patterson Companies Inc. (PDCO) will publicize fourth-quarter results before market opens on May 21, with analysts projecting earnings of $0.50 per share on revenues of $811.64 million. In the year-ago period, earnings totaled $0.51 per share on sales of $778.4 million.
Patterson Companies, a value-added distributor serving the dental, companion-pet veterinarian and rehabilitation supply markets, projects fourth-quarter earnings to range between $0.49 and $0.51 per share.
Although the healthcare sector is somewhat resistant to economic slowdown, it is not wholly immune. As the recession has reduced the overall level of discretionary income, patients are postponing or canceling treatments to cut costs. Also, the economy has fairly encroached on the lithe spending of dental practitioners, particularly in the area of high-end equipment.
Living through the tough times however, pet owners are postponing recommended diagnostics, procedures, or medical treatments to cut costs on pet care. According to findings from the National Commission on Veterinary Economic Issues or NCVEI and a study by Brakke Consulting, pet owners report spending less on veterinary services, some practice owners have had to lay off at least one veterinarian and or staff, and up to 44% of veterinarians have canceled or postponed capital investment such as veterinary equipment purchases.
For fiscal 2009, Patterson Companies currently expects earnings to range between $1.72 and $1.74 per share, compared to the previously communicated guidance range of $1.73 - $1.77 per share. Analysts estimate earnings of $1.72 per share for the full-year 2009.
For the preceding third quarter, the St. Paul, Minnesota-based company reported net income of $52.81 million, down from $60.36 million in the prior-year quarter. However, on a per share basis, earnings were flat with the year-ago quarter at $0.45. Quarterly net sales increased 4% to $811.02 million from $776.95 million in the previous year.
Among Patterson's rivals, Animal Health International Inc. (AHII) posted a decline in second-quarter net income that totaled $2.3 million or $0.09 per share, compared to $5.5 million or $0.23 per share in the previous year, reflecting lower spending by production animal customers. Net sales dropped 9.2% to $184.5 million from $203.2 million in the previous year.
Animal Health expects fiscal 2009 net income, excluding projections of future acquisitions, to range between $7.3 million and $9.3 million, with net sales ranging from $650 million to $680 million.
Another peer, Henry Schein Inc. (HSIC) fetched first-quarter net income of $54.85 million or $0.61 per share, up from $51.44 million or $0.56 per share in the previous year, helped by lower costs. Net sales declined 2.2% to $1.49 billion from $1.52 billion in the year-ago quarter. For fiscal 2009, Henry Schein reiterated its prior earnings forecast of $3.11 - $3.26 per share.
Patterson Companies shares, which have been trading between $15.75 and $35.24 in the past 52 weeks, closed Wednesday's trading session at $22.57, down 12 cents or 0.53%. During the after hours session, the stock gained 31 cents or 1.36% trading at $22.88.
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