Henry Schein
(Nasdaq: HSIC)
shares fell this morning on second-quarter results that came in mixed compared to the consensus forecast.
Shares of HSIC dipped 2.5% at $76.11 apiece during early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 0.5%.
The Melville, New York-based dental technology company posted profits of $140 million. That equals $1.06 per share on sales of $3.1 billion for the three months ended July 1, 2023.
Henry Schein recorded a 12.5% bottom-line slide on 2.3% sales growth.
Adjusted to exclude one-time items, earnings per share were $1.31, 3¢ ahead of Wall Street, where analysts were looking for sales of $3.13 billion.
Global dental sales totaled $2 billion in the quarter, marking a 5.6% year-over-year rise. Henry Schein attributed that growth to its North America dental businesses with increased patient traffic.
Medical sales of $1 billion represented a 4.6% decrease. However, internal sales increased 2% when excluding personal protective equipment products and COVID-19 test kits. Lower flu cases versus the previous year also resulted in lower point-of-care diagnostic test and related product sales.
“Today, we are reporting solid results for the second quarter driven by our North America dental businesses with strong equipment and steady general merchandise sales, and continuing strength in sales of our technology and value-added services, implants, biomaterials and endodontic products. Demand for dental services and customer confidence continue to improve, as evidenced by the ongoing investments our customers are making in their practices,” said Stanley M. Bergman, chair and CEO of Henry Schein. “Our outlook reflects overall confidence in our business and in the markets we serve.”
Henry Schein reaffirmed its previous 2023 guidance for adjusted EPS between $5.18 and $5.35 and sales growth between 1% and 3%.