Patterson's stock plunges after profit miss
Published: March 1, 2018 at 12:12 p.m. ET
Bowdeya Tweh
Shares in Patterson Cos. PDCO, +1.51% fell 21% in morning trading after it missed a profit target from analysts in its third quarter and lowered its outlook for the current fiscal year.
The St. Paul, Minn., dental and animal-health products supplier blamed part of the decline in dental segment sales on changes in its sales force, among other operational changes.
Patterson reported a profit of $109 million, or $1.18 a share, compared with $24.5 million, or 26 cents a share, for the same period a year ago.
The company reported adjusted earnings of 43 cents a share on $1.38 billion in sales in its latest quarter. Analysts polled by Thomson Reuters expected a profit of 52 cents a share on $1.38 billion in revenue.
"Our third-quarter results did not meet our expectations," Chief Executive Mark Walchirk said. "Since joining Patterson 90 days ago, I have begun a thorough review of our business and the factors impacting performance. We are moving quickly to implement an initial set of actions to improve our results."
Patterson also lowered its outlook for the current fiscal year, excluding restructuring and other expenses, to $1.65 to $1.70 a share.
Patterson shares are down 46% over the past year, compared with a 13% gain in the S&P 500.
Patterson also announced Dennis Goedken would serve as finance chief on an interim basis after the resignation of Ann Gugino, who had been with the company for 12 years.
Write to Bowdeya Tweh at bowdeya.tweh@wsj.com