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.

Total Revenue
$3.16B
Previous year: $3.07B
+3.1%
EPS
$1.32
Previous year: $1.15
+14.8%
Gross Profit
$995M
Previous year: $869M
+14.5%
Cash and Equivalents
$166M
Previous year: $123M
+35.0%
Total Assets
$9.81B
Previous year: $8.53B
+15.0%

Henry Schein

Henry Schein

Henry Schein Revenue by Segment

Henry Schein Revenue by Geographic Location

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