Patterson Companies Inc. (PDCO)

Shares of Patterson Companies Inc. (PDCO) dropped by 17.24% from $31.43 to $26.01 in the trading on Wednesday, November 29, 2023. The reason why PDCO is down today is due to the company's disappointing second-quarter fiscal 2024 earnings report and a downward revision in its earnings guidance.

• Earnings Below Expectations: Patterson Companies reported an adjusted earnings per share (EPS) of 50 cents for the quarter, missing the Zacks Consensus Estimate of 59 cents by 15.3%. This marked a 20.6% decline compared to the previous year's quarter. The GAAP EPS for the same period was 42 cents, down 23.6% year-over-year.
• Revenue Details: The company's net sales for the quarter were $1.65 billion, falling short of the Zacks Consensus Estimate by 3.2%. However, there was a modest 1.6% year-over-year increase in the top line. Adjusted for currency effects, internal sales grew by 1% compared to the previous year's quarter.
• Guidance Revision: Patterson Companies lowered its earnings guidance for fiscal 2024, now projecting adjusted EPS in the range of $2.35-$2.45, down from the previous range of $2.45-$2.55. The Zacks Consensus Estimate for the same period is $2.50.

Patterson Companies' (PDCO) shares initially plummeted 7.77% after reporting slightly weaker Q1 2024 revenue at $1.577 billion. Despite a 3.5% YoY revenue increase, strong earnings growth in dental and animal health segments, and reaffirmed fiscal 2024 guidance, concerns about inflation and economic slowdown weighed on the stock's recent 34% gains, leading to the decline.

https://www.fool.com/investing/2023/08/30/why-patterson-companies-stock-dropped-today/