Patterson Cos. was the highest-performing stock in Minnesota on Thursday — and highest within the S&P 400 Midcap index — after reporting better-than-expected second-quarter results and raising its guidance for the remainder of its fiscal year.
Shares of the Mendota Heights-based provider of supplies to dental and veterinary markets rose more than 14% in trading Thursday, closing at $23.10 per share, up $2.87. The company released its second-quarter results for the period ended Oct. 26 before the stock market opening.
The company lost $33.1 million, or 35 cents per share, compared with a gain of $28.9 million, or 31 cents per share, in the same period a year ago. But much of the loss was because of a $58.3 million reserve related to an investigation into the sales of prescription animal health products.
The company's adjusted earnings were $36.6 million, or 39 cents per share, nearly the same as the second quarter last year but better than the 34 cents per share expected by analysts tracked by Thomson Reuters.
Sales for the quarter were $1.4 billion, up 1%, and mildly better than expectations. Sales were strongest in Patterson's Dental segment, $564.6 million for the quarter, up 4%. But sales at its largest segment, Animal Health, which provides 60% of overall revenue, were down less than 1% to $848.2 million for the second quarter.
"As a result of the progress we have made against our strategic priorities during the first two quarters of fiscal 2020, we are raising our adjusted earnings guidance for the year," said Mark Walchirk, Patterson's president and CEO, in a release.
Patterson now expects to report adjusted earnings in the range of $1.36 to $1.46 per diluted share for the year. That is up from the $1.13 to $1.23 range it announced in its first-quarter earnings release in August.
Patrick Kennedy • 612-673-7926
