MELVILLE, N.Y. - Henry Schein , Inc. (NASDAQ:HSIC), a global distributor of health care products and services, announced its first-quarter financial results, delivering a mixed performance with a solid adjusted earnings per share (EPS) but a slight miss on revenue expectations.
The company reported a first-quarter adjusted EPS of $1.10, surpassing the analyst consensus of $1.02. However, revenue for the quarter was $3.17 billion, falling short of the estimated $3.21 billion.
The company's GAAP diluted EPS stood at $0.72, and total net sales saw a 3.7% increase compared to the first quarter of the previous year. Despite a decrease in internal sales by 1.8%, which included a 300 to 400 basis points decline due to last year's cyber incident and a 60 basis point decrease from lower personal protective equipment (PPE) sales, the company's overall performance reflected a robust recovery.
Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein, attributed the solid earnings to gross margin expansion and a strong recovery from the previous quarter's cyber incident. Bergman also highlighted the company's progress in executing its BOLD+1 Strategic Plan and the positive contribution from recent acquisitions.
For the fiscal year 2024, Henry Schein has tightened its total sales growth guidance range to 8% to 10%, reflecting the ongoing recovery from the cyber incident and a strong pipeline of new specialty products and software innovation. The company affirmed its adjusted EPS guidance of $5.00 to $5.16, which indicates a growth of 11% to 15% compared to the 2023 adjusted EPS of $4.50. The midpoint of the guidance range, $5.08, is slightly above the analyst consensus of $5.06.
Adjusted EBITDA is expected to grow by more than 15% compared to the previous year, consistent with prior guidance. The company's capital deployment during the quarter included repurchasing approximately 1 million shares of its common stock at an average price of $75.10 per share.
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