Henry Schein Q4 2019 Earnings Report
Key Takeaways
Henry Schein reported a 7.9% increase in net sales from continuing operations, reaching $2.7 billion. GAAP diluted EPS was $2.25, up 192.2% year-over-year, while non-GAAP diluted EPS was $0.97, a 9.0% increase. The company affirms its 2020 non-GAAP diluted EPS guidance of $3.65 to $3.75.
GAAP diluted EPS from continuing operations increased by 192.2% year-over-year to $2.25, driven by a net gain on the sale of equity investments.
Non-GAAP diluted EPS from continuing operations grew by 9.0% year-over-year to $0.97.
Net sales from continuing operations rose by 7.9% to $2.7 billion, with 8.9% growth in local currencies.
The company repurchased approximately 2.9 million shares of its common stock during the fourth quarter for $200 million.
Henry Schein
Henry Schein
Henry Schein Revenue by Segment
Henry Schein Revenue by Geographic Location
Forward Guidance
Henry Schein affirmed 2020 non-GAAP diluted EPS guidance of $3.65 to $3.75, reflecting growth of 4% to 7% compared with 2019.
Positive Outlook
- 2020 non-GAAP diluted EPS from continuing operations attributable to Henry Schein, Inc. is expected to be $3.65 to $3.75.
- Guidance assumes no significant supply chain disruption related to the Novel Coronavirus Disease 2019 (COVID-19) for certain infection control products.
- Guidance is for current continuing operations as well as completed or previously announced acquisitions.
- Guidance does not include the impact of potential future acquisitions, if any, and 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
- Company is not providing 2020 GAAP diluted EPS guidance.
- Unable to provide an accurate estimate of expenses related to a planned restructuring.
- Restructuring is intended to mitigate stranded costs associated with the spin-off of its Animal Health business.
- Restructuring is intended to drive operating efficiencies.
- Inability to provide these reconciliations is due to the uncertainty and inherent difficulty of predicting the occurrence, the financial impact, and the periods in which the non-GAAP adjustments may be recognized.
Revenue & Expenses
Visualization of income flow from segment revenue to net income