Why Is Dental Supplier Henry Schein Stock Trading Higher Today?

Henry Schein Inc HSIC reported Q3 FY23 sales of $3.16 billion, slightly missing the consensus of $3.21 billion, up 3.1% Y/Y, including a 1.2% decrease in local currencies excluding acquisitions, reflecting some market softening in the second half of the quarter as well as lower sales of PPE products and COVID-19 test kits.

Growth from acquisitions was 3.2%, and a 1.1% increase in net sales related to foreign currency exchange. 

Sales of PPE products and COVID-19 test kits in the quarter were $175 million, a decrease of $69 million versus the prior-year period. 

Also Read: Henry Schein's Transition From Distributor To Manufacturer Spurs Upgrade - This Analyst Sees Easing Headwinds.

When excluding sales of PPE products and COVID-19 test kits, third-quarter internal sales growth in local currencies was 1.1% compared with the prior year period.

Global Dental sales were $1.9 billion, an increase of 5.4% Y/Y. Global Medical sales were $1.1 billion, down 3.1% Y/Y.

Adjusted EPS of $1.32, up 2.3% Y/Y, in line with the estimate.

Guidance: Henry Schein updates its FY23 adjusted EPS guidance to $4.43-$4.71, reflecting a narrowing of the previous guidance range for the underlying business to $5.18-$5.26 from its previous guidance of $5.18-$5.35, reflecting softening macroeconomic conditions.

The company also estimates a $0.55-$0.75 per share business interruption impact of the recent cybersecurity incident.

FY23 sales are now expected to be approximately 1%-3% lower than full-year 2022 sales, compared to prior guidance of 1%-3% sales growth, primarily due to the recent cybersecurity incident.

William Blair expects the lowered guidance to be largely transient headwinds to EPS as the company works back to normal operations following the recent cyberattack, but says it will remain a key focus, especially when looking to understand any potential long-term impacts.

Price Action: HSIC stock is up 6.57% at $68.28 on the last check Monday.