Pet market continues to boost results for Mendota Heights’ Patterson

Patterson Cos. is continuing to benefit from the pandemic-fueled rise in pet adoptions, with spending on companion animals contributing to a 17% increase in third quarter earnings.

The Mendota Heights-based distributor of animal and dental products reported their third quarter earnings were $ 57 million, or 58 cents a share. Adjusted earnings per share for the period ended Jan. 29 were 55 cents, 5 cents better than analyst expectations.

“Patterson is successfully navigating a dynamic end market environment and delivered solid top-line growth and gross margin expansion during the third quarter that builds on our strong performance during the year ago period,” said Mark Walchirk, Patterson’s chief executive, in a news release .

Millions of people adopted pets during the pandemic and have been spending to treat, train and take care of their pets. In the first quarter, Patterson made his own purchase in the companion animal market, spending $ 19.8 million on West Point, Neb.-based Miller Vet, a more than 100-year-old distributor of veterinary products and supplies in the companion animal space.

Patterson, which distributes products to both the companion and production animal segments, saw its sixth straight quarter of double-digit sales growth on the companion animal side driving the animal health segment, which overall saw sales up 5% to $ 945 million in the quarter. Operating income in the segment increased 14% to $ 23.4 million.

The omicron variant put pressure on dental markets during the quarter, with Patterson’s dental segment sales growing less than 1% to $ 651 million. Operating income for the segment increased 5% to $ 64.1 million.

Walchirk told analysts the company believes effects from the COVID-19 variant are waning. “We anticipate the most notable impact from the omicron variant is reflected in our third quarter results,” Walchirk said.

The company raised its earnings guidance for the remainder of its fiscal year, which ends April 30. which will end April 30, from the range of $ 1.69 to $ 1.79 a share to $ 1.86 to $ 1.91 a share.

Shares of Patterson closed Wednesday at $ 30.74, up 4.5%. Over the last 52 weeks, shares have ranged between $ 26.51 and $ 37.37.

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