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Jul 29, 2023

Patterson Q1 2024 Earnings Report

Patterson's first quarter of fiscal year 2024 showed increased net sales and internal sales, along with adjusted operating margin expansion and earnings growth.

Key Takeaways

Patterson Companies reported a 3.5% increase in net sales to $1.6 billion and a 2.8% increase in internal sales for the first quarter of fiscal 2024. GAAP earnings per diluted share were $0.32, while adjusted earnings per diluted share increased 25% to $0.40. The company reaffirmed its fiscal 2024 earnings guidance.

Net sales increased by 3.5% year-over-year to $1.6 billion, with internal sales up by 2.8%.

Adjusted operating margin expanded across the overall business as well as in the Dental and Animal Health segments.

GAAP earnings per diluted share were $0.32, and adjusted earnings per diluted share rose by 25% to $0.40.

$54.9 million was returned to shareholders through dividends and share repurchases.

Total Revenue
$1.58B
Previous year: $1.52B
+3.5%
EPS
$0.4
Previous year: $0.32
+25.0%
Gross Profit
$319M
Previous year: $312M
+2.2%
Cash and Equivalents
$109M
Previous year: $150M
-27.4%
Free Cash Flow
-$28.4M
Previous year: -$317M
-91.0%
Total Assets
$2.88B
Previous year: $2.76B
+4.5%

Patterson

Patterson

Patterson Revenue by Segment

Forward Guidance

Patterson Companies reaffirmed its fiscal 2024 earnings guidance.

Positive Outlook

  • GAAP earnings are expected to be in the range of $2.14 to $2.24 per diluted share.
  • Non-GAAP adjusted earnings are expected to be in the range of $2.45 to $2.55 per diluted share.
  • Guidance reflects the strength of the business.
  • Guidance reflects competitive positioning.
  • Guidance reflects expectations for the North American and international end markets.

Challenges Ahead

  • Guidance expects ongoing challenges of inflationary trends.
  • Guidance expects higher interest rates.
  • Guidance expects a potential slow-down in the broader economy.
  • Guidance assumes no material adverse developments associated with wide-spread public health concerns.
  • Deal amortization expenses of approximately $29.3 million ($0.31 per diluted share) are excluded from non-GAAP adjusted earnings.

Revenue & Expenses

Visualization of income flow from segment revenue to net income