Patterson Cos. shares slid 3.6% Wednesday, after the maker of dental and animal health products posted better-than-expected earnings for its fiscal third quarter but declined to offer guidance given the continued uncertainty created by the coronavirus pandemic.
The company
PDCO,
Sales rose to $1.55 billion from $1.46 billion, also ahead of the $1.50 billion FactSet consensus.
Sales of dental products, which accounted for about 42% of total sales, rose to $648.9 million from $626.6 million.
Sales at the animal health business rose to $894.3 million from $817.3 million a year ago. The animal health business was boosted by people acquiring pets for company during the pandemic’s restrictions on movement and social distancing requirements. That in turn led to increased veterinary clinic traffic and pet wellness visits.
See: Some pet owners are spending more than $2,000 a year on their dogs
On the production animal side, the company benefited from a shift of the fall cattle run in the second quarter that made comps in the third quarter more challenging, according to Chief Executive Mark Walchirk on the company’s earnings call with analysts.
In the swine market, it was hit by processing plant disruption caused by COVID, which it expects will improve going forward, he said.
The numbers were a turnaround from the second quarter, when Patterson posted a loss as people stayed away from the dentist during the pandemic. Walchirk said that trend continued in the third quarter.
“Patient traffic continues to remain below pre-pandemic levels, and we know that some patients are still hesitant to visit a dentist under the current conditions,” Walchirk told analysts, according to a FactSet transcript.
Walchirk is expecting that trend to reverse as vaccine programs step into high gear and demand for equipment revives.
Shares have gained 29.6% in the last 12 months, while the S&P 500
SPX,
Read also: ‘We needed each other in this crazy mess.’ Is the pandemic a good time to rescue a dog?
