Henry Schein Predicts Higher EPS Amid Recovery Efforts
- Henry Schein's adjusted EPS for Q3 was $1.22, surpassing the consensus of $1.17, even as sales were $3.17 billion, which fell short of the forecast.
- Sales growth was impacted by acquisitions, foreign currency exchanges, and a decline in PPE sales, while the dental segment showed ongoing stability.
- The company anticipates 2024 EPS of $4.74-$4.82, highlighting recovery and growth strategies in its business segments following past setbacks.
On November 5, 2024, Henry Schein Inc. reported its third-quarter financial results for the year. The company achieved an adjusted EPS of $1.22, surpassing market expectations, although total sales of $3.17 billion fell short of forecasts. Factors affecting sales growth included acquisitions and challenges from foreign exchange rates, with the global dental segment witnessing a slight decline. Despite these obstacles, the company noted that its dental equipment division is recovering well in North America and seeing increased investments abroad. During the third quarter, Henry Schein incurred $48 million in restructuring costs as part of its plan to streamline operations, with projections indicating potential annual savings of $75 million to $100 million by the end of 2025. CEO Stanley Bergman indicated that recent acquisitions and product launches during their strategic planning cycle have contributed positively to financial outcomes, and the company's restructuring initiatives are progressing well. Guidance for 2024 predicts sales growth of 4%-5%, slightly revised from earlier estimates, with an adjusted EPS forecast range that reflects improvement. The company's strong focus on regaining market share in its dental and medical distribution sectors has shown promising results following the cyber incident last year, suggesting effective recovery strategies are in place. This resilience, combined with capital returned to shareholders, demonstrates the company’s strong trajectory moving forward. Overall, Henry Schein is positioned for an optimistic outlook in 2024, despite earlier challenges, signaling their commitment to improving operational efficiency and enhancing shareholder value.