$Patterson (PDCO.US)$ reported Q2 FY24 net sales of $1.65 billion, up 1.6% Y/Y, missing the consensus of $1.70 billion. Q3 internal sales increased 1%. "Our team executed well against softer than anticipated demand within our end markets," said Don Zurbay, President and CEO of Patterson Companies.
"Steady patient traffic supported strong performance in our broad and resilient dental consumables portfolio that was offset by lower sales in certain high-tech dental equipment categories."
Reported net sales in the Dental segment reached $626.4 million. Internal sales decreased 0.2% Y/Y. Internal sales of consumables increased 2.9% Y/Y.
In Patterson Dental, excluding the deflationary impact of certain infection control products, internal sales of consumables increased 4.7% Y/Y. Internal sales of equipment decreased 6.3%, and internal sales of value-added services increased 3.1%.
Animal Health segment sales reached $1.02 billion. Internal sales growth of 0.2% was driven by growth in the production animal business, which offset reduced sales in the companion animal business.
Within the Animal Health segment, internal sales of consumables decreased 0.6%, equipment increased 0.9%, and value-added services increased by 67.9%.
Adjusted EPS of $0.50 down from $0.63 a year ago and missed the consensus of $0.58.
Outlook: Patterson revised its FY24 adjusted EPS guidance to $2.35-$2.45, down from prior guidance of $2.45-$2.55 against the consensus of $2.50.
The company says that the guidance reflects the strength of the business and competitive positioning, as well as expectations for the North American and international end markets, which are expected to be affected by the ongoing challenges of inflationary trends, higher interest rates, and additional slow-downs in the broader economy.