May 26--With help from a large acquisition, fourth quarter sales increased 40 percent for Patterson Cos., beating analysts' expectations.
The distributor of dental and veterinary and farm supplies saw a 22 percent increase in earnings over the same quarter a year ago. For the quarter ended April 30, the Mendota Heights company's profit from continuing operations was $65.6 million, or 68 cents a share. Excluding one-time items, adjusted earnings were 77 cents a share, 2 cents more than analysts anticipated.
The stock jumped nearly 7 percent to $48.72 per share in late morning trading.
CEO Scott Anderson praised the company's "solid bottom-line performance" and noted, like he did after third quarter results, that Patterson's year-ago $1.1 billion acquisition of Animal Health International contributed to results and dramatically expanded its reach into ranch and farm animal supplies.
"In our Animal Health segment, integration initiatives remained on pace during the quarter and our realized synergies were on plan," Anderson said in a statement. "Although we were pleased with bottom-line results within our dental segment, we did not meet our revenue expectations and intend to capitalize on opportunities to improve segment results to better reflect the industry leadership we have built."
Fourth quarter dental sales fell 1 percent to $662 million, while sales of animal supplies jumped 119 percent during the quarter.
Sales for the full fiscal year rose 38 percent to $5.4 billion and earnings from continuing operations rose 3 percent to $185.7 million, or $1.90 per share.
"Overall, in fiscal 2016, we achieved multiple milestones that will move us significantly closer to transforming into two highly focused and efficient business segments with strong growth prospects," Anderson said.
The company expects 2017 fiscal year earnings of $2.60 to $2.70 per share.
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