Henry Schein’s Stock Falls after Missing Sales Estimates

by Warren Seah

Henry Schein Inc.’s stock (HSIC, +3.07%) declined by 3.3% in premarket trade on Monday. The provider of dental and medical supplies reported weaker-than-expected sales for the third quarter and revised its full-year guidance to reflect a slowing economy.

Third Quarter Financial Results

Henry Schein, based in Melville, N.Y., achieved a net income of $173 million, or $1.32 per share in the quarter. This compares to $150 million, or $1.09 per share, in the same period last year. Adjusted per-share earnings were also $1.32, aligning with the FactSet consensus.

Although sales increased to $3.162 billion from $3.067 billion year-over-year, it fell slightly short of the $3.212 billion FactSet consensus.

Lowered Full-Year Guidance

The company narrowed its full-year guidance, now expecting adjusted earnings per share (EPS) in the range of $4.43 to $4.71. This is below the FactSet consensus EPS of $5.20.

The revised guidance reflects softening macro conditions and includes an estimated impact of 55 cents to 75 cents from a recent cybersecurity incident, excluding any potential insurance claim recovery.

Additionally, Henry Schein anticipates a decline in sales of 1% to 3%, compared to the previous growth expectation of 1% to 3%.

Stock Performance

Year to date, Henry Schein’s stock has dropped by 20%, whereas the S&P 500 (SPX, +1.56%) has gained 15%.

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