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Oct 28, 2023

Patterson Q2 2024 Earnings Report

Reported a 1.6% increase in net sales and EPS of $0.42 per diluted share.

Key Takeaways

Patterson Companies reported a 1.6% increase in net sales to $1.65 billion and GAAP earnings of $0.42 per diluted share for the second quarter of fiscal year 2024. The company's performance was driven by strong dental consumables growth, offset by lower sales in certain high-tech dental equipment categories. The Animal Health segment benefited from a diverse offering and omnichannel presence.

Second quarter net sales increased 1.6% year-over-year to $1.65 billion.

Internal sales increased 1.0% year-over-year, driven by dental consumables growth of 2.9%.

GAAP earnings were $0.42 per diluted share, and adjusted earnings were $0.50 per diluted share.

Returned $85.9 million to shareholders through dividends and share repurchases.

Total Revenue
$1.65B
Previous year: $1.63B
+1.6%
EPS
$0.5
Previous year: $0.63
-20.6%
Gross Profit
$339M
Previous year: $328M
+3.3%
Cash and Equivalents
$114M
Previous year: $140M
-18.8%
Free Cash Flow
-$248M
Previous year: -$230M
+8.0%
Total Assets
$2.89B
Previous year: $2.88B
+0.3%

Patterson

Patterson

Patterson Revenue by Segment

Forward Guidance

Patterson Companies revised its fiscal 2024 earnings guidance, expecting GAAP earnings in the range of $2.04 to $2.14 per diluted share and non-GAAP adjusted earnings in the range of $2.35 to $2.45 per diluted share.

Positive Outlook

  • Strength of our business
  • Competitive positioning
  • Expectations for the North American and international end markets
  • Unaffected by material adverse developments associated with wide-spread public health concerns.

Challenges Ahead

  • Ongoing challenges of inflationary trends
  • Higher interest rates
  • Additional slow-down in the broader economy
  • Macroeconomic uncertainty
  • Geopolitical uncertainty

Revenue & Expenses

Visualization of income flow from segment revenue to net income