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Sep 30, 2023
Henry Schein Q3 2023 Earnings Report
Henry Schein reported solid financial results for Q3 2023, with total sales growth and non-GAAP diluted EPS growth despite lower PPE and COVID-19 test kit sales. The company is recovering from a recent cybersecurity incident and reaffirms confidence in the stability of dental and medical markets.
Key Takeaways
Henry Schein reported a 3.1% increase in total net sales, reaching $3.2 billion. GAAP diluted EPS was $1.05, and non-GAAP diluted EPS was $1.32. The company is updating its full-year non-GAAP diluted EPS guidance to $4.43 to $4.71, reflecting softening macroeconomic conditions and the impact of a recent cybersecurity incident.
Total net sales for the quarter were $3.2 billion, a 3.1% increase year-over-year.
GAAP net income was $137 million, or $1.05 per diluted share.
Non-GAAP net income was $173 million, or $1.32 per diluted share.
Full-year 2023 sales are now expected to be approximately 1% to 3% lower than full-year 2022 sales.
Henry Schein
Henry Schein
Henry Schein Revenue by Segment
Henry Schein Revenue by Geographic Location
Revenue by Segment
Global Dental Revenue
CapyFin.comGlobal Medical Revenue
CapyFin.comRevenue by Geographic Location
U.S. Distribution and Value-Added Services Revenue
CapyFin.comInternational Distribution and Value-Added Services Revenue
CapyFin.com Forward Guidance
Henry Schein updated guidance for full-year 2023, and now expects non-GAAP diluted EPS of $4.43 to $4.71 and full-year 2023 sales are now expected to be approximately 1% to 3% lower than full-year 2022 sales.
Positive Outlook
- Distribution businesses are now operational
- Initiating the reactivation of ecommerce platform
- Made significant progress resuming the high levels of service
- Confidence in the stability of the dental and medical markets
- Remain committed to strategic priorities and long-term financial model
Challenges Ahead
- Softening macroeconomic conditions
- An estimated $0.55 to $0.75 per share business interruption impact of the recent cybersecurity incident
- Cybersecurity incident excludes any future insurance claim recovery
- Change in guidance is primarily due to the recent cybersecurity incident
- Unable to provide without unreasonable effort an estimate of integration and restructuring costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income