Dental supply maker Patterson Companies Inc (NASDAQ:PDCO) announced Thursday that it is exploring strategic options, including a sale or merger, to boost shareholder value.

What Happened: The company disclosed the sale process as part of its second-quarter financial report.

Earnings were mixed, “given the challenging end market environment,” said Patterson CEO Don Zurbay.

Patterson posted second-quarter 2025 net sales of $1.67 billion. That’s up 1.3% year-over-year. Wall Street expected a net sales of $1.65 billion. Internal sales increased just 0.6%.

Here’s a breakdown of the dental business:

• Dental segment sales reached $611.7 million.
• Internal sales decreased 2.3%.
• Internal sales of equipment decreased 7.5%.
• Internal sales of value-added services decreased 2.7% — likely due to a cybersecurity attack on Change Healthcare. 

As for Patterson’s animal health segment:

• Sales reached $1.05 billion. 
• Internal sales increased 1.9%.
• Internal sales of consumables increased 1.6%
• Equipment increased 1.4%, and
• Value-added services increased 17.1%.

The company reported adjusted EPS of 47 cents. That’s down from 50 cents a year ago. It missed the consensus of 49 cents.

GAAP and adjusted earnings were also negatively impacted by the Change Healthcare cyber attack.

Patterson “took dedicated cost management actions” and “made targeted investments in complementary businesses,” according to Zurbay.

Outlook: Patterson expects fiscal year 2025 adjusted EPS Of $2.25-$2.35 compared to the consensus of $2.32 and prior guidance of $2.33-$2.43.

Price Action: Patterson stock is up 6.54% at $23.31 during the premarket session at last check Thursday.

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