Patterson CEO Blames Q1 Drag On Change Healthcare Cyberattack, 'Timing Of Corporate Expenses'

Patterson Companies Inc‘s PDCO first-quarter 2025 net sales of $1.54 billion, down 2.2% year-over-year.

Wall Street expected a net sales of $1.59 billion. Internal sales increased 2.8%.

“Our first quarter results fell short of our expectations, primarily due to the greater than anticipated impact of the Change Healthcare cybersecurity attack on the value-added services category in our dental segment, along with lower sales in our companion animal business and the timing of certain corporate expenses,” said Don Zurbay, president and CEO.

The company reported dental segment sales of $550.4 million. Internal sales increased 2.8%. Internal sales of consumables decreased 2.1%. 

Internal sales of equipment decreased 2.4%. Internal sales of value-added services decreased 6.7% compared to the prior year period, primarily due to the negative impact of the cybersecurity attack on Change Healthcare.

Animal Health segment sales reached $982.4 million. Internal sales fell 2.8%. Internal sales of consumables declined 3.0%, equipment decreased 3.8%, and value-added services increased 8.3%. 

Adjusted EPS of 24 cents, down from 40 cents a year ago, and missed the consensus of 32 cents.

“In light of these factors and against the backdrop of a challenging macroeconomic environment, we are taking dedicated cost and management actions across Patterson to deliver on our financial plan for fiscal 2025 and maintaining a strategic focus on supporting our customers with the deep and differentiated value-proposition they expect from us,” Zurbay added.

Outlook: Patterson reaffirmed 2025 adjusted EPS guidance of $2.33-$2.43 versus consensus of $2.36.

Price Action: PDCO stock is down 9.11% during the premarket session at last check Wednesday.

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