Investors Cheer Patterson Companies' FY22 Guidance Update

Patterson Companies Inc PDCO reported Q1 FY22 sales of $1.61 billion, +29.6% Y/Y, beating the consensus of $1.44 billion.
"Our fiscal first-quarter results reflect the continued momentum we are building across our Dental and Animal Health businesses and Patterson's position of strength in the market," said Mark Walchirk, President and CEO.
Dental segment sales increased 41% y/Y to $606.9 million compared to $430.3 million in the first quarter of last year. Internal sales growth was driven by solid performance across consumables, equipment, and value-added services.
Animal Health segment sales increased 23.5% to $1 billion driven by solid performance in companion animals and faster than expected recovery in production animal segments.
The gross margin declined to 17.2% from 20.4% a year ago. Adjusted operating margin compressed slightly to 3.6% from 3.8% a year ago.
Patterson Co reported an adjusted EPS of $0.43, surpassing the consensus of $0.37.
Guidance: Patterson Companies updated its fiscal 2022 adjusted EPS guidance to $1.95 - $2.05, compared to prior guidance of $1.90 - $2.05 and the consensus of $1.96.
Price Action: PDCO shares are up 6.14% at $31.96 during the market session on the last check Thursday.