Q1 2025 Patterson Companies Inc Earnings Call Transcript
Key Points
- Patterson Companies Inc (PDCO) reaffirmed its fiscal 2025 earnings guidance, indicating confidence in meeting its financial targets despite a challenging first quarter.
- The company is implementing cost and expense discipline measures across the organization to improve profitability.
- Patterson's production animal business continued its strong momentum, generating low single-digit internal sales growth.
- The animal health segment's value-added services category delivered strong high single-digit internal sales growth, driven by the success of the Turnkey platform.
- Patterson is investing in innovation, such as integrating Pearl's AI pathology detection feature into Eaglesoft software and enhancing dental practice management solutions with Weave.
- First-quarter results declined year-over-year due to persistent inflation, elevated interest rates, and general uncertainty in the macro environment.
- The companion animal business underperformed, partly due to strategic decisions to focus on more profitable business, impacting rebate incentives and margins.
- The Change Healthcare cybersecurity attack significantly disrupted the dental segment, affecting the ability to submit insurance claims and resulting in lost revenue.
- Unexpected increases in medical claims as a self-insured entity further impacted first-quarter results.
- Internal sales in the dental segment declined, with dental consumables and equipment sales both decreasing year-over-year.
Good morning, and welcome to the Patterson Companies, Inc., first-quarter fiscal 2025 earnings call. Please note that this call is being recorded. (Operator Instructions)
I will now turn the call over to John Wright, Vice President of Investor Relations. Please go ahead, sir.
Thank you, operator. Good morning, everyone, and thank you for participating in Patterson Companies' fiscal 2025 first quarter conference call. Joining me today are Patterson President and Chief Executive Officer, Don Zurbay; and Patterson Chief Financial Officer, Kevin Barry. After a review of our results and outlook by management, we will open the call to your questions.
Before we begin, let me remind you that certain comments made during this conference call are forward-looking in nature and subject to certain risks and uncertainties. These factors, which could cause actual results to materially differ from those indicated in such forward-looking statements, are discussed in detail in our Form
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
