Mar 27, 2021

Henry Schein Q1 2021 Earnings Report

Henry Schein reported record financial results for the first quarter of 2021, driven by strong sales growth across all segments.

Key Takeaways

Henry Schein reported record first-quarter financial results from continuing operations, with total net sales of $2.9 billion, a 20.4% increase compared to the first quarter of 2020. GAAP diluted EPS from continuing operations was $1.16, and non-GAAP diluted EPS from continuing operations was $1.24. The company raised its guidance for 2021 non-GAAP diluted EPS to be at or above $3.70.

Total net sales increased by 20.4% to $2.9 billion compared to the prior year.

GAAP diluted EPS from continuing operations was $1.16, up from $0.91 in the prior year.

Non-GAAP diluted EPS from continuing operations was $1.24, compared to $0.94 in the prior year.

The company raised its 2021 non-GAAP diluted EPS guidance to at or above $3.70.

Total Revenue
$2.93B
Previous year: $2.43B
+20.4%
EPS
$1.24
Previous year: $0.94
+31.9%
Gross Profit
$891M
Previous year: $746M
+19.4%
Cash and Equivalents
$145M
Previous year: $617M
-76.6%
Total Assets
$7.78B
Previous year: $7.52B
+3.5%

Henry Schein

Henry Schein

Henry Schein Revenue by Segment

Henry Schein Revenue by Geographic Location

Forward Guidance

Henry Schein raised guidance for 2021 non-GAAP diluted EPS from continuing operations to be at or above $3.70.

Positive Outlook

  • 2021 non-GAAP diluted EPS from continuing operations attributable to Henry Schein, Inc. is expected to be at or above $3.70, representing a floor for fiscal 2021.
  • Guidance for 2021 non-GAAP diluted EPS attributable to Henry Schein, Inc. is for current continuing operations as well as completed or previously announced acquisitions.
  • Guidance does not include the impact of future share repurchases.
  • Guidance does not include potential future acquisitions, if any, or restructuring expenses.
  • Guidance assumes foreign exchange rates that are generally consistent with current levels, and that end markets remain stable and are consistent with current market conditions.

Challenges Ahead

  • At this time, the Company is not providing guidance for 2021 GAAP diluted EPS from continuing operations as it is unable to provide an accurate estimate of expenses related to the ongoing restructuring initiative.
  • Guidance does not assume any material adverse market changes associated with COVID-19.
  • Reconciliation to the Company’s projected 2021 diluted EPS from continuing operations prepared on a GAAP basis is not provided because the Company is unable to provide without unreasonable effort an estimate of costs related to an ongoing restructuring program to mitigate stranded costs and drive additional operating efficiencies, including the corresponding tax effect that will be included in the Company’s 2021 diluted EPS from continuing operations prepared on a GAAP basis.
  • The inability to provide these reconciliations is due to the uncertainty and inherent difficulty of predicting the occurrence, magnitude, financial impact and the timing of related costs.
  • Management does not believe these items are representative of the Company’s underlying business performance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income