Patterson Companies, Inc. (NASDAQ:PDCO) stock fell 0.088% (As on December 6, 11:24:35 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 25. In the quarter under review, Patterson Companies’ gross profit decreased 3.2% year over year to $328.1 million. As a percentage of revenues, the gross margin of 19.6% contracted 92 basis points (bps) on a year-over-year basis. The company had projected 20.4% of gross margin in the second quarter of fiscal 2025. Operating expenses of $290.5 billion rose 2.9% year over year. Operating profit totaled $37.6 million, reflecting a 33.9% plunge from the year-ago quarter. The operating margin in the fiscal second quarter contracted 120 bps to 2.2%. PDCO exited the second quarter of fiscal 2025 with cash and cash equivalents of $157.9 million compared with $148.1 million at the fiscal first-quarter end. Total debt (including current debt obligations) at the end of second-quarter fiscal 2025 was $450.4 million compared with $451 million at the fiscal first-quarter end. Cumulative net cash used in operating activities at the end of second-quarter fiscal 2025 was $458.7 million compared with $485.3 million a year ago.

Moreover, for the quarter, the Dental segment reported revenues of $611.7 million, down 2.3% from the year-ago quarter. Internal sales of consumable were $348.9 million in the reported quarter, up 0.7% from the year-ago quarter. Internal sales of equipment were $185.2 million in the reported quarter, down 7.5% from the year-ago quarter. Internal sales of value-added services were $77.6 million in the reported quarter, down 2.7% from the year-ago quarter. Revenues in the Animal Health segment totaled $1.05 billion, up 2.9% year over year on a reported basis and 0.9% at CER. Internal sales increased 1.9% year over year in the reported quarter.

PDCO in the second quarter of FY 25 has reported the adjusted earnings per share of 47 cents, missing the analysts’ estimates for the adjusted earnings per share by 4.1%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 1.3 percent to $1.67 billion in the second quarter of FY 25, beating the analysts’ estimates for revenue by 2.1%.

Patterson Companies has lowered its adjusted EPS outlook for fiscal 2025. PDCO now projects its full fiscal year adjusted EPS between $2.25 and $2.35, down from the prior outlook of $2.33-$2.43. The Zacks Consensus Estimate is pegged at $2.32.