Shares of Patterson Companies (PDCO) are in the spotlight after the company reported quarterly results, with earnings for Q2 decreasing year-over-year but still beating Street estimates. Commenting on Patterson's earnings report, Piper Sandler analyst Jason Bednar noted that the company reported second quarter revenue "nicely above" the Street's consensus estimate and said he continues to view Patterson as his "top value idea."
RESULTS: Patterson companies reported second quarter earnings per share of 49c, which compares to last year's second quarter earnings per share of 56c. Excluding items, the company reported second quarter adjusted earnings of 58c for the period. The consensus EPS estimate was at 50c for the quarter. Patterson also reported second quarter revenue of $1.65B, which was better than the expected $1.58B, and raised its earnings per share guidance for fiscal 2022 to $2.00-$2.10 from $1.95-$2.05, with consensus at $2.03.
TOP VALUE IDEA: Piper Sandler analyst Jason Bednar maintained an Overweight rating and $41 price target on Patterson Companies after the company reported second quarter revenue "nicely above" the Street's consensus estimate, with upside stemming from animal health. The revenue beat along with better-than-expected margins led to adjusted earnings per share above the Street's consensus and management also raised EPS guidance for a second quarter in a row, noted Bednar, who continues to view Patterson as his "top value idea." While shares are trading lower and underperforming the dental group, and he continues to be surprised investors aren't yet rewarding the improving track record at Paterson, Bednar believes "it's only a matter of time before this happens."
PRICE ACTION: In Wednesday afternoon trading, shares of Patterson Companies have dropped over 4% to $30.10.
Patterson Companies
-1.23 (-3.90%)