Henry Schein Q4 2023 Earnings Report
Key Takeaways
Henry Schein reported Q4 2023 financial results, with total net sales of $3.0 billion, a decrease of 10.5% compared to Q4 2022. GAAP net income was $18 million, or $0.13 per diluted share, and non-GAAP net income was $86 million, or $0.66 per diluted share. The results were impacted by a cybersecurity incident and acquisition-related expenses.
Total net sales for the quarter were $3.0 billion, a decrease of 10.5% compared with the fourth quarter of 2022.
GAAP net income for the quarter was $18 million, or $0.13 per diluted share.
Non-GAAP net income for the quarter was $86 million, or $0.66 per diluted share.
The 2024 guidance reflects continued confidence in the stability of the underlying markets.
Henry Schein
Henry Schein
Henry Schein Revenue by Segment
Henry Schein Revenue by Geographic Location
Forward Guidance
Henry Schein introduced financial guidance for 2024, expecting non-GAAP diluted EPS of $5.00 to $5.16, sales growth of approximately 8% to 12%, and Adjusted EBITDA to increase by more than 15%.
Positive Outlook
- 2024 non-GAAP diluted EPS attributable to Henry Schein, Inc. is expected to be $5.00 to $5.16, reflecting growth of 11% to 15% compared with 2023 non-GAAP diluted EPS of $4.50.
- This guidance reflects an estimated residual impact of the cybersecurity incident of approximately $0.15 per diluted share, which will primarily impact the first quarter.
- 2024 sales growth is expected to be approximately 8% to 12% over 2023, and reflects the expected merchandise sales recovery subsequent to the cybersecurity incident, and sales from the acquisitions completed in 2023.
- 2024 Adjusted EBITDA is expected to increase by more than 15%.
- The company expects merchandise sales recovery subsequent to the cybersecurity incident, and sales from the acquisitions completed in 2023.
Challenges Ahead
- This guidance reflects an estimated increase in the non-GAAP effective tax rate from 23% to 25%, or approximately $0.13 per diluted share.
- Total net sales reflect an estimated reduction of $350 million to $400 million, or 10% to 12%, due to the cybersecurity incident.
- The company anticipates some short-term residual impact on merchandise sales from the incident.
- The company is unable to provide without unreasonable effort an estimate of integration and restructuring costs related to an ongoing initiative to drive operating efficiencies and certain expenses directly associated with the cybersecurity incident.
- The inability to provide this reconciliation is due to the uncertainty and inherent difficulty of predicting the occurrence, magnitude, financial impact and timing of related costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income