In the first quarter to reflect a major acquisition and divestiture, Patterson Cos. saw sales jump 42 percent, while operating profits climbed 26 percent, officials said Tuesday.
Still, results missed analysts' expectations by 4 cents a share. Patterson's stock fell $2.92 a share Tuesday to close at $45.71.
The Mendota Heights-based dental and animal supply distributor reported second-quarter sales of $1.4 billion and adjusted profits from continuing operations of $55.3 million, or 56 cents a share. Wall Street generally expected 60 cents per share.
Officials said the quarter "was affected by higher than anticipated health care claims and the impact of foreign currency," which stems from a high U.S. dollar that makes exports more expensive.
The second quarter included results from Animal Health International, the large farm animal supply company for which Patterson paid $1.1 billion in June. The deal for the company, which has operations in the United States, United Kingdom and Canada, greatly expanded Patterson's presence in the farm animal supply arena. It added $414 million in sales to the quarter and now contributes 56 percent of company sales.
In late August, Patterson sold its therapy and medical products division to Madison Dearborn Partners for $715 million in cash.
The changes dramatically shifted Patterson's business so it is focused on dental and animal supply products. Officials said they expect that combination to provide the key to future growth.
"We are in the middle of a significant year for Patterson and continue to build momentum," said CEO and Chairman Scott Anderson in a statement. "We have transformed and repositioned our company in the markets we serve."
