Earnings Summary Patterson Companies Inc Reports Fiscal 2025 Q1 Financial Results
Intellectia.AI Updated: 2024-08-28
Earnings Summary: Patterson Companies, Inc. Reports Fiscal 2025 Q1 Financial Results
Patterson Companies, Inc. (NASDAQ: PDCO) today reported its financial results for the fiscal first quarter ended July 27, 2024.
Key Financial Metrics
| Metric | Q1 2025 | Q1 2024 | Year-over-Year Change | Consensus Estimates (Current Quarter) |
|---|---|---|---|---|
| Total Revenue | $1.54 billion | $1.57 billion | -2.2% | $1.59 billion |
| GAAP EPS | $0.15 | $0.32 | -53.1% | $0.32 |
| Adjusted EPS | $0.24 | $0.40 | -40% | N/A |
Interpretation : The company’s financial performance for the first quarter of fiscal 2025 reflects a decline in both revenue and earnings. The revenue fell short of both the previous year and consensus estimates, which is largely attributed to the cybersecurity attack on Change Healthcare and softer sales in key segments.
Segment Revenue Performance
| Segment | Q1 2025 | Year-over-Year Change |
|---|---|---|
| Dental | $550.4 million | -2.8% |
| Animal Health | $982.4 million | -2.8% |
Interpretation : Both the Dental and Animal Health segments experienced a decline in internal sales, with Dental impacted significantly by a cybersecurity attack, and Animal Health affected by lower consumables and equipment sales.
Key Developments and Operational Highlights
- Net income attributable to Patterson Companies, Inc. for Q1 2025 was $13.7 million, compared to $31.2 million in Q1 2024.
- Adjusted net income was $21.0 million for Q1 2025, down from $38.6 million in Q1 2024.
- The company returned $73.3 million to shareholders through dividends and share repurchases in Q1 2025.
- Capital allocation included declaring a quarterly cash dividend of $0.26 per share and repurchasing approximately $50.0 million of shares.
Management Comments
Don Zurbay, President and CEO, noted, "Our first quarter results fell short of our expectations, primarily due to the greater than anticipated impact of the Change Healthcare cybersecurity attack on the value-added services category in our dental segment, along with lower sales in our companion animal business and the timing of certain corporate expenses. In light of these factors and against the backdrop of a challenging macroeconomic environment, we are taking dedicated cost and management actions across Patterson to deliver on our financial plan for fiscal 2025, and maintaining a strategic focus on supporting our customers with the deep and differentiated value-proposition they expect from us."
Dividends and Share Repurchase Program
- The company declared a quarterly cash dividend of $0.26 per share.
- Approximately $450 million of share repurchase authority remains on its current share repurchase authorization.
Forward Guidance
- GAAP earnings guidance for fiscal 2025 reaffirmed at $2.00 to $2.10 per diluted share.
- Non-GAAP adjusted earnings guidance reaffirmed at $2.33 to $2.43 per diluted share.
Stock Price Movement
Following the release of the earnings report, the stock price saw a decrease of 6.9%.
Conclusion
Patterson Companies, Inc. experienced a challenging first quarter in fiscal 2025, with key operational impacts from a cybersecurity attack and softer market conditions. While the company reaffirmed its fiscal 2025 guidance, it is focused on cost and management actions to meet its financial objectives and continue delivering value to its shareholders.
For further information, visit Patterson Companies' website .
