The firm has projected an EPS of $2.13 for Patterson in FY25, which is below the company's provided guidance range of $2.33 to $2.43. This projection by Mizuho (NYSE:MFG) reflects a conservative estimate based on the challenges and uncertainties identified in their analysis. Investors should note that Patterson's next earnings report is scheduled for December 5, 2024.
For deeper insights into Patterson's valuation and financial health metrics, access the comprehensive Pro Research Report available on InvestingPro. Investors should note that Patterson's next earnings report is scheduled for December 5, 2024. For deeper insights into Patterson's valuation and financial health metrics, access the comprehensive Pro Research Report available on InvestingPro. Consequently, Mizuho anticipates possible downward revisions to both the company's outlook and the estimates of other analysts.
The second factor influencing Mizuho's rating is the potential risk associated with Patterson's distribution contract with Dentsply Sirona (XRAY). There is uncertainty regarding the renewal of this long-term agreement, as well as the possibility that if it is renewed, it may come with less favorable financial terms for Patterson. Despite these concerns, InvestingPro data shows Patterson maintains strong fundamentals with $6.53B in revenue and has consistently maintained dividend payments for 15 consecutive years.
Mizuho also referenced findings from their dental survey, which indicate that there may be minimal improvement in the U.S. dental sector's outlook for the calendar year 2025 compared to 2024. This lackluster sector outlook, combined with mixed consumer confidence index (CCI) data, has led Mizuho to express reservations about Patterson's ability to achieve its FY25 financial targets.
The firm has projected an EPS of $2.13 for Patterson in FY25, which is below the company's provided guidance range of $2.33 to $2.43. This projection by Mizuho reflects a conservative estimate based on the challenges and uncertainties identified in their analysis.
In other recent news, Patterson Companies (NASDAQ:PDCO) reported a slight decrease in first-quarter fiscal 2025 results, with consolidated sales down to $1.54 billion. Despite challenges, including a cybersecurity attack on Change Healthcare (NASDAQ:CHNG) and lower sales in the Companion Animal business, Patterson has reaffirmed its fiscal 2025 earnings guidance.
Leerink Partners has adjusted its price target for Patterson, reducing it to $28 from $30, while maintaining an Outperform rating. The firm also predicts that Patterson Companies will report total revenue of $1.624 billion and earnings per share (EPS) of $0.46 for the quarter.
In response to these developments, Baird, BofA Securities, and Piper Sandler have adjusted their outlooks on Patterson, maintaining a Neutral rating by Baird and Piper Sandler, while BofA Securities continues to recommend the stock as a Buy. Patterson Companies has also signed agreements to acquire Infusion Concepts Ltd in the UK and Mountain Vet Supply in the US, aiming to bolster its animal health business.
On the governance front, Patterson Companies' shareholders recently elected a new board and approved key proposals, including executive compensation and the appointment of Ernst and Young LLP as the company’s independent auditor.
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