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Apr 01, 2023
Henry Schein Q1 2023 Earnings Report
Henry Schein's financial performance in Q1 2023 was impacted by decreased sales of PPE products and COVID-19 test kits, but the underlying core businesses showed good earnings momentum.
Key Takeaways
Henry Schein reported a decrease of 3.8% in net sales compared to Q1 2022, with sales totaling $3.1 billion. GAAP diluted EPS was $0.91, and non-GAAP diluted EPS was $1.21. Excluding PPE products and COVID-19 test kits, internal sales growth in local currencies was 6.3%. The company is updating its full-year 2023 non-GAAP diluted EPS guidance to $5.18 to $5.35.
Net sales decreased by 3.8% to $3.1 billion, but internal sales, excluding PPE and COVID-19 test kits, increased by 6.3% in local currencies.
GAAP diluted EPS was reported at $0.91, compared to $1.30 in Q1 2022.
Non-GAAP diluted EPS was $1.21, down from $1.44 in the same quarter last year.
Full-year 2023 non-GAAP diluted EPS guidance updated to $5.18 to $5.35, reflecting dilution from the Biotech Dental acquisition.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Henry Schein expects 2023 sales growth to be approximately 1% to 3% over 2022. Sales of PPE products are expected to decline about 20% to 25%, and COVID-19 test kits are expected to decrease by approximately 65% to 70% from 2022. 2023 non-GAAP diluted EPS is expected to be $5.18 to $5.35.
Positive Outlook
- 2023 sales growth is expected to be approximately 1% to 3% over 2022, unchanged from prior guidance.
- 2023 guidance reflects high single-digit to low double-digit growth in non-GAAP operating income over 2022 when excluding the contribution from PPE products and COVID-19 test kits, and acquisition-related expenses.
- The company expects to see continued growth in its core Medical business, although at a slower pace than the previous year.
- The Technology and Value-Added Services business had an excellent quarter, driven by the strength of Henry Schein One.
- The company is executing well on its BOLD +1 Strategic Plan, and the underlying fundamentals of its core business remain solid.
Challenges Ahead
- 2023 sales of PPE products are expected to decline about 20% to 25%, unchanged from prior guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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