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Dec 26, 2020
Henry Schein Q4 2020 Earnings Report
Reported fourth quarter financial results from continuing operations, demonstrating sales growth and resilience amidst the COVID-19 pandemic.
Key Takeaways
Henry Schein reported a strong Q4 2020 with total net sales reaching $3.2 billion, an 18.6% increase year-over-year, driven primarily by PPE and COVID-19 related product sales. GAAP diluted EPS was $0.99, while non-GAAP diluted EPS was $1.00. The company's dental and medical segments showed growth, with medical experiencing a significant surge due to COVID-19 related demand.
Total net sales increased by 18.6% compared to Q4 2019, reaching $3.2 billion.
GAAP diluted EPS from continuing operations was $0.99, down from $2.25 in the prior year, which included a net gain on sale of equity investments.
Non-GAAP diluted EPS from continuing operations was $1.00, slightly up from $0.97 in the prior year.
Medical sales increased significantly due to demand for PPE and COVID-19 related products, while dental sales also showed growth.
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 introduced guidance for 2021 non-GAAP diluted EPS from continuing operations, expecting it to be at or above the 2019 level of $3.51. The guidance assumes stable market conditions and consistent foreign exchange rates, not accounting for potential acquisitions, restructuring expenses, or share repurchases.
Positive Outlook
- Non-GAAP diluted EPS from continuing operations attributable to Henry Schein, Inc. is expected to be at or above 2019 non-GAAP diluted EPS from continuing operations of $3.51.
- Guidance for 2021 non-GAAP diluted EPS attributable to Henry Schein, Inc. 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, restructuring expenses or share repurchases.
- Guidance also assumes foreign exchange rates that are generally consistent with current levels.
- Guidance assumes that end markets remain stable and are consistent with current market conditions.
Challenges Ahead
- The Company is not providing guidance for 2021 GAAP diluted EPS from continuing operations as it is unable to provide an accurate estimate of expenses related to an ongoing restructuring initiative in 2021.
- Guidance does not assume any material market changes associated with COVID-19.
- Reconciliation to the Company’s projected 2021 diluted EPS from continuing operations prepared on a GAAP basis is not provided because the Company is unable to provide without unreasonable effort an estimate of costs related to an ongoing restructuring program.
- The inability to provide these reconciliations is due to the uncertainty and inherent difficulty of predicting the occurrence, magnitude, financial impact, and the timing of related costs.
- Management does not believe these items are representative of the Company’s underlying business performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income