Henry Schein Q2 2023 Earnings Report
Key Takeaways
Henry Schein reported a 2.3% increase in total net sales for Q2 2023, reaching $3.1 billion. GAAP diluted EPS was $1.06, while non-GAAP diluted EPS was $1.31. The company affirms its 2023 non-GAAP diluted EPS guidance of $5.18 to $5.35.
Total net sales increased by 2.3% to $3.1 billion compared to Q2 2022.
GAAP net income was $140 million, or $1.06 per diluted share.
Non-GAAP net income was $173 million, or $1.31 per diluted share.
Global Dental sales increased by 5.6% to $2.0 billion, driven by North America.
Henry Schein
Henry Schein
Henry Schein Revenue by Segment
Henry Schein Revenue by Geographic Location
Forward Guidance
The company expects 2023 sales growth of approximately 1% to 3% over 2022. Sales of PPE products are expected to decrease about 25% to 30%, and COVID-19 test kits are expected to decrease by approximately 70% to 80%.
Challenges Ahead
- 2023 sales of PPE products are now expected to decrease about 25% to 30%
- 2023 sales of COVID-19 test kits are now expected to decrease by approximately 70% to 80%
- 2023 non-GAAP operating margin is expected to be 10 to 15 basis points below 2022 non-GAAP operating margin of 8.2%, largely a result of lower PPE products and COVID-19 test kit sales and profits.
- The impact on 2023 non-GAAP diluted EPS from lower contributions to earnings from sales of PPE products and COVID-19 test kits is estimated to be $0.35 to $0.40
- 2023 non-GAAP diluted EPS3:â—ŹRemains unchanged at $5.18 to $5.35, which is -4% to -1% compared with 2022 non-GAAP diluted EPS of $5.38
Revenue & Expenses
Visualization of income flow from segment revenue to net income