Henry Schein (NSDQ:HSIC) shares dipped slightly today on second-quarter losses that still managed to top the consensus forecast.
The Melville, N.Y.-based medical device maker posted losses of -$13.3 million, or -8¢ per share, on sales of $1.7 billion for the three months ended June 27, 2020, for a bottom-line slide into the red from profits of $119.2 million last year. Sales declined by 31.2%.
Adjusted to exclude one-time items, earnings per share came in at $0.00, 12¢ ahead of Wall Street, where analysts were looking for sales of $1.4 billion.
The ongoing COVID-19 pandemic negatively impacted Henry Schein’s quarter, particularly with its dental business, as the company reported a 41.2% drop in sales for that segment. However, the company said in a news release that it saw positive trends as procedures delayed by the pandemic began to slowly trickle back.
“Regarding our second-quarter financial results, COVID-19 significantly impacted our worldwide results, particularly in our dental business, yet sales improved relative to our original expectations across all our business groups as we progressed through the quarter,” Henry Schein chairman of the board & CEO Stanley Bergman said in the release. “This was directly related to a resumption of operations for both our dental and medical customers, which occurred faster than we had anticipated, first in our international markets and then in North America.
“We remain cautiously optimistic about the immediate future while closely monitoring global diagnosed COVID-19 cases and the potential impact on customer activity, and focusing on cash management. Our enthusiasm for both our near- and long-term business prospects remains unchanged.”
Henry Schein is not providing 2020 financial guidance due to the uncertainties caused by the pandemic.
HSIC shares were down -1.2% at $70.07 per share in midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -0.3%.