HSIC Top-Line Results Were Solid, Goldman Sachs Reports

Henry Schein, Inc. HSIC reported 4Q EPS of $1.00 “vs. our estimate and consensus at $0.96,” Goldman Sachs reports. “Relative to our model, top-line results were solid although COGS was considerably ahead of our estimate, while the bottom line was helped by below the line items (i.e. minority interest),” Goldman Sachs writes. “Importantly, dental consumables sales increased a robust 9.7%. In our view, this is another indication that underlying demand in the dental market is stabile and moving toward normalized levels, and corroborates comments and results seen recently from key competitor PDCO and other dental market participants. “Areas of focus on the call will be: (1) organic growth of the consumables as compared to acquisition and market share driven growth; (2) factors contributing to international performance and in particular dental equipment; and (3) insight into utilization trends in the Medical segment.” Henry Schein currently trades at $68.67.