Henry Schein (Nasdaq:HSIC) shares are down today on second-quarter sales that missed the Wall Street consensus forecast amid declining COVID-19 test demand and foreign exchange headwinds.
The Melville, New York–based company posted profits of $160 million, or $1.16 per share, on sales of just over $3 billion for the three months ended June 25, 2022, for a 2.6% bottom-line gain on sales growth of 2.1%.
Adjusted to exclude one-time items, earnings per share were also $1.16, equaling expectations on Wall Street, where analysts were looking for sales of $3.12 billion.
Henry Schein CEO Stanley M. Bergman said in a news release that the Q2 results reflected good underlying business momentum and strategy executiion. “While we are maintaining our full-year 2022 diluted EPS guidance range… we are adjusting our expectations for full-year sales growth to reflect changes, including a continued strengthening of the U.S. dollar and declining demand for COVID-19 test kits.
Bringing in revenues of $996 million, Henry Schein’s medical segment experienced 10.3% growth year-over-year. The company’s dental business dipped 3.1% from 2021.
“Our global medical business had another excellent quarter with double-digit internal sales growth in local currencies when excluding PPE and COVID-19-related products,” Bergman said. “During the second quarter, we had strong sales of point-of-care diagnostic tests including flu test kits, as well as generic pharmaceuticals and equipment. Patient traffic was bolstered by a high number of visits for seasonal influenza.”
Henry Schein stood firm on its EPS guidance for a range between $4.75 and $4.91 for the full year. However, as Bergman said, the company reduced its expected revenue growth, dropping from between 5% and 8% to between 3% and 6%.
Shares of HSIC were down more than 2% to $76.08 apiece by midday trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up slightly.