Patterson Companies, Inc. PDCO delivered third-quarter fiscal 2025 adjusted earnings per share (EPS) of 43 cents, which declined 27.1% year over year. The figure missed the Zacks Consensus Estimate by 30.7%.

GAAP EPS for the quarter was 35 cents, reflecting a decline of 32.7% from the year-ago figure.

PDCO’s Revenues in Detail

Revenues totaled $1.57 billion, reflecting a decline of 2.7% year over year. The figure missed the Zacks Consensus Estimate by 3.8%.

Internal sales (adjusted for the effects of currency translation, the net impact of an interest rate swap and contributions from recent acquisitions) decreased 2.4% year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Pending Sale Transaction

In December, Patient Square Capital agreed to acquire Patterson Companies for approximately $4.1 billion in an all-cash transaction. The “Go-Shop” period, under which PDCO had the right to actively solicit and consider alternative acquisition proposals from third parties, expired on Jan. 21. Per the terms of the deal with Patient Square Capital, the acquisition is now expected to be completed in April, subject to the satisfaction of customary closing conditions.

In light of this pending acquisition, PDCO did not provide any guidance.

Patterson Companies, Inc. Price, Consensus and EPS SurprisePatterson Companies, Inc. Price, Consensus and EPS Surprise

Patterson Companies, Inc. price-consensus-eps-surprise-chart | Patterson Companies, Inc. Quote

Patterson Companies’Segmental Details

Its operations consist of two business segments — Dental and Animal Health.

In the quarter under review, the Dental segment reported revenues of $596.3 million, down 6.4% from the year-ago quarter’s level. The Zacks Consensus Estimate for fiscal third-quarter segmental revenues was pegged at $631.8 million.

The segment consists of three sub-segments — Consumable, Equipment and Value-added services and other.

Sales of Consumable totaled $327.6 million, down 6.6% from the year-ago level. The Zacks Consensus Estimate for fiscal third-quarter revenues was pinned at $343.2 million.

Equipment sales amounted to $196 million, down 7.3% from the year-ago figure. The Zacks Consensus Estimate for fiscal third-quarter revenues was pegged at $206 million.

Sales of value-added services totaled $72.8 million, down 2.7% from the year-ago level. The Zacks Consensus Estimate for fiscal third-quarter revenues was pegged at $82.5 million.

Revenues in the Animal Health segment totaled $972.4 million, up 0.5% year over year on a reported basis. The Zacks Consensus Estimate for fiscal third-quarter revenues was pinned at $972.9 million.

Story Continues

Internal sales increased 0.2% year over year in the reported quarter.

The segment consists of three sub-segments — Consumable, Equipment and Value-added services and other.

Sales of Consumable totaled $914.4 million in the reported quarter, up 0.3% year over year on a reported basis. The Zacks Consensus Estimate for fiscal third-quarter revenues was pegged at $913.2 million.

Internal sales of Consumable remained flat year over year in the reported quarter.

Sales of Equipment totaled $33.5 million, down 1.1% from the year-ago level. The Zacks Consensus Estimate for fiscal third-quarter revenues was pegged at $35 million.

Sales of Value-added services amounted to $24.5 million in the reported quarter, up 11.1% year over year on a reported basis. The Zacks Consensus Estimate for fiscal third-quarter revenues was pinned at $24.8 million.

Internal sales of Value-added services were up 10.8% year over year in the reported quarter.

PDCO’s Margin Analysis

In the quarter under review, gross profit decreased 8.6% year over year to $320.8 million. As a percentage of revenues, the gross margin of 20.4% contracted 130 basis points (bps) on a year-over-year basis. We had projected 21.7% of gross margin for the third quarter of fiscal 2025.

Operating expenses of $275.4 billion declined 2% year over year.

Operating profit totaled $45.4 million, reflecting a 35.1% plunge from the year-ago level. The operating margin contracted 140 bps to 2.9%.

Patterson Companies’ Financial Position

PDCO exited the third quarter of fiscal 2025 with cash and cash equivalents of $135 million compared with $157.9 million at the end of the fiscal second quarter. Total debt (including current debt obligations) at the end of third-quarter fiscal 2025 was $623.8 million compared with $450.4 million at the end of the fiscal second quarter.

Cumulative net cash used in operating activities at the end of the fiscal third quarter was $735.1 million compared with $719.8 million a year ago.

PDCO’s Zacks Rank and Stocks to Consider

PDCO currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the industry have been discussed below.

Avenna Healthcare AVAH, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated earnings growth rate of 666.7% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

AVAH delivered a trailing four-quarter average earnings surprise of 135.00%. The company is expected to release fourth-quarter results in March. Its shares have lost 4% in the past six months against the industry’s 2.1% growth.

Alphatec ATEC, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 40% for 2025. Its earnings missed estimates in each of the trailing four quarters, delivering an average negative surprise of 12.60%.

ATEC’s shares have gained 87.7% against the industry’s 0.1% decline in the past six months.

Masimo MASI, carrying a Zacks Rank #2 at present, has an estimated growth rate of 9.5% for 2025.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 47% against the industry’s 0.1% decline in the past six months. The company is scheduled to release fourth-quarter results today.

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