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Dec 31, 2022
Henry Schein Q4 2022 Earnings Report
Reported mixed results with sales increase slightly but EPS decreased significantly due to restructuring and integration costs.
Key Takeaways
Henry Schein reported a slight increase in fourth-quarter net sales, but GAAP diluted EPS decreased significantly. The company introduced 2023 financial guidance, expecting operating income growth when excluding the contribution from PPE products and COVID-19 test kits.
Fourth-quarter net sales increased 1.2% to $3.4 billion compared to the fourth quarter of 2021.
Fourth-quarter GAAP diluted EPS was $0.34, compared to $1.05 in the fourth quarter of 2021.
Fourth-quarter non-GAAP diluted EPS was $1.21, compared to $1.07 in the fourth quarter of 2021.
Introduced guidance for 2023 non-GAAP diluted EPS of $5.25 to $5.42, excluding amortization expense of acquired intangible assets.
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 2023 non-GAAP diluted EPS to be $5.25 to $5.42.
Positive Outlook
- Guidance reflects high single-digit to low double-digit growth in non-GAAP operating income over 2022 when excluding the contribution from PPE products and COVID-19 test kits.
- 2023 sales growth is expected to be approximately 1% to 3% over 2022.
- Fundamentals in the dental end market remain solid.
- Demand for dental equipment in North America remains healthy, and the North America equipment order book is stable.
- Growth in the Technology and Value -added Services business was strongest in the international business due to the strength of our Dentally cloud-based solution.
Challenges Ahead
- 2023 non-GAAP diluted EPS excludes amortization expense of prior acquisitions of $0.56 in 2023 and $0.57 in 2022.
- 2023 sales of PPE products and COVID-19 test kits are expected to decrease in aggregate by approximately 30% to 35% from 2022.
- 2023 non-GAAP operating margin is expected to be 10 to 15 basis points below 2022 non-GAAP operating margin of 8.20%, 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 expected to be approximately $0.35 to $0.40.
- Global dental consumable merchandise growth was impacted by a high incidence of flu and COVID-19 cases, which caused increased rates of patient appointment cancellations and furthered staffing shortages.
Revenue & Expenses
Visualization of income flow from segment revenue to net income