Henry Schein Inc Reports SecondQuarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-06
Henry Schein, Inc. Reports Second-Quarter 2024 Financial Results
Henry Schein, Inc. (NASDAQ: HSIC), the world's largest provider of healthcare solutions to office-based dental and medical practitioners, reported its financial results for the second quarter ended June 29, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YOY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $3.1B | $3.07B | +1.1% | $3.27B |
| GAAP Diluted EPS | $0.80 | $1.06 | -24.5% | |
| Non-GAAP Diluted EPS | $1.23 | $1.31 | -6.1% | $1.22 |
| Operating Cash Flow | $296M | $274M | +8.0% | |
| Adjusted EBITDA | $268M | $279M | -3.9% |
Interpretation: Henry Schein reported a slight increase in total revenue by 1.1% year-over-year, slightly missing the consensus estimate of $3.27 billion. Despite stable end markets and strong operating cash flow, earnings per share showed a decline both on GAAP and non-GAAP bases. The company cited slower-than-anticipated recovery from a cyber incident and challenging economic environments as influencing factors.
Segment Revenue Performance
| Segment | Q2 2024 Revenue | YOY Change |
|---|---|---|
| Acquisitions | +4.0% growth | |
| Foreign Exchange Rate | -0.5% impact | |
| PPE Sales | -0.5% impact | |
| External Sales | -2.4% |
Interpretation: The acquisitions contributed positively with a 4.0% increase in sales. However, foreign exchange rates and declining PPE sales negatively impacted revenue by 0.5% each. The segment performance, in aggregate, reflects a mixed impact resulting in a modest total net sales increase.
Operational Data
- Year-to-date operating cash flow of $493 million, up $192 million compared with year-to-date 2023.
Comments from Company Officers
"We delivered solid second-quarter financial results, including strong operating cash flow, that reflected stable end markets. Gross margin continued to increase, driven by our strategies to expand our high-growth, high-margin products and services and by the successful performance of our recent acquisitions. We are experiencing improving sales trends in our distribution businesses, however, the pace of recovery in these businesses since the cyber incident late last year has been slower than anticipated." - Stanley M. Bergman, Chairman of the Board and CEO of Henry Schein.
Dividends and Share Repurchase Program
- Henry Schein repurchased approximately 1.4 million shares at an average price of $70.64 per share totaling approximately $100 million. An additional $500 million share repurchase program was authorized by the Board of Directors.
Forward Guidance
- 2024 full-year non-GAAP EPS guidance updated to $4.70 to $4.82, reflecting a revision from prior guidance of $5.00 to $5.16.
- Total sales growth for 2024 is now expected to be approximately 4% to 6%, down from previous guidance of 8% to 10%.
Stock Price Movement
- Post-earnings release, Henry Schein experienced a slight decline in stock price, changing by -0.29%.
Henry Schein remains committed to its long-term financial goals despite current economic challenges and continues to focus on achieving synergies from its BOLD+1 Strategic Plan, supported by its robust balance sheet and new restructuring initiatives.
