PSS World Medical Increases Sales but Misses Revenue Estimate

PSS World Medical (NAS: PSSI) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q3), PSS World Medical missed slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and earnings per share grew.

Gross margins improved, operating margins contracted, and net margins were steady.

Revenue details
PSS World Medical recorded revenue of $521.8 million. The seven analysts polled by S&P Capital IQ predicted revenue of $530.0 million. Sales were 3.5% higher than the prior-year quarter's $496.2 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.37. The earnings estimates compiled by S&P Capital IQ predicted $0.37 per share on the same basis. GAAP EPS of $0.38 for Q2 were 8.6% higher than the prior-year quarter's $0.35 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.3%, 130 basis points better than the prior-year quarter. Operating margin was 6.6%, 20 basis points worse than the prior-year quarter. Net margin was 3.8%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $539.6 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $2.13 billion. The average EPS estimate is $1.44.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 61 members out of 65 rating the stock outperform, and four members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give PSS World Medical a green thumbs-up, and none give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PSS World Medical is hold, with an average price target of $25.13.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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