Yahoo Finance Patterson Companies, Inc. (NASDAQ:PDCO) Just Released Its Annual Results And Analysts Are Updating Their Estimates
Investors in Patterson Companies, Inc. (NASDAQ:PDCO) had a good week, as its shares rose 5.5% to close at US$24.14 following the release of its yearly results. It was a credible result overall, with revenues of US$6.6b and statutory earnings per share of US$1.98 both in line with analyst estimates, showing that Patterson Companies is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Patterson Companies
Following the latest results, Patterson Companies' twelve analysts are now forecasting revenues of US$6.73b in 2025. This would be a modest 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 2.9% to US$2.06 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.74b and earnings per share (EPS) of US$2.10 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
The consensus price target held steady at US$28.45, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Patterson Companies at US$31.00 per share, while the most bearish prices it at US$25.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Patterson Companies' past performance and to peers in the same industry. We would highlight that Patterson Companies' revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2025 being well below the historical 4.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Patterson Companies is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Patterson Companies' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$28.45, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Patterson Companies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Patterson Companies going out to 2027, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 3 warning signs for Patterson Companies (2 don't sit too well with us!) that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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