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Apr 29, 2023

Patterson Q4 2023 Earnings Report

Patterson's Q4 2023 earnings were reported, highlighted by increased net sales and adjusted earnings per share.

Key Takeaways

Patterson Companies reported a 5.0% increase in net sales to $1.72 billion for the fourth quarter of fiscal 2023, with internal sales increasing by 5.7%. GAAP earnings were $0.77 per diluted share, and adjusted earnings were $0.84 per diluted share, an 18% increase year-over-year. The company also issued fiscal 2024 GAAP earnings guidance of $2.14 to $2.24 per diluted share and adjusted earnings guidance of $2.45 to $2.55 per diluted share.

Fourth quarter reported net sales increased 5.0 percent year-over-year to $1.7 billion, and internal sales increased 5.7 percent.

Adjusted operating margin expansion occurred during the fourth quarter and fiscal 2023 for business overall and across both Dental and Animal Health segments.

$156.8 million was returned to shareholders in fiscal 2023 through dividends and share repurchases.

Fourth quarter GAAP earnings were $0.77 per diluted share and adjusted earnings of $0.84 per diluted share, an increase of 18 percent over prior year.

Total Revenue
$1.72B
Previous year: $1.64B
+5.0%
EPS
$0.84
Previous year: $0.71
+18.3%
Gross Profit
$390M
Previous year: $348M
+11.9%
Cash and Equivalents
$160M
Previous year: $142M
+12.4%
Total Assets
$2.88B
Previous year: $2.74B
+5.0%

Patterson

Patterson

Patterson Revenue by Segment

Forward Guidance

Patterson Companies issued its fiscal 2024 earnings guidance, expecting GAAP earnings to be in the range of $2.14 to $2.24 per diluted share and non-GAAP adjusted earnings to be in the range of $2.45 to $2.55 per diluted share.

Positive Outlook

  • Strength of business and competitive positioning
  • Expectations for the North American and international end markets
  • Focus on executing proven strategy
  • Building upon momentum to deliver continued growth
  • Continued value creation

Challenges Ahead

  • Ongoing challenges of inflationary trends
  • Higher interest rates
  • Potential slow-down in the broader economy
  • Macroeconomic and geopolitical uncertainty
  • Material adverse developments associated with wide-spread public health concerns

Revenue & Expenses

Visualization of income flow from segment revenue to net income