Shares in Henry Schein (NSDQ:HSIC) fell today after the medical device maker posted fourth quarter and full year 2018 earnings that beat earnings per share expectations but missed on revenue consensus.
The Melville, N.Y.-based company posted profits of approximately $133 million, or 87¢ per share, on sales of approximately $3.38 billion for the three months ended December 29, seeing a swing from red ink on the bottom line while sales grew 1.7% compared with the same period during the previous year.
After adjusting to exclude one-time items, earnings per share were $1.12, just ahead of the $1.11 consensus on Wall Street where analysts were expecting to see sales of $3.46 billion, which the company missed.
For the full year, Henry Schein posted profits of approximately $535.9 million, or $3.49 per share, on sales of approximately $13.2 billion, for bottom-line growth of 31.9% while sales grew 5.9% compared with the previous year.
Adjusted to exclude one-time items, earnings per share were $4.13, just ahead of the $4.12 consensus on Wall Street where analysts were expecting to see sales of approximately $13.3 billion, which the company missed.
“This has been a historic year at Henry Schein as we further positioned the company to advance our 2018 to 2020 strategic plan. This included the creation of our Henry Schein One dental technology business, the spin-off of our animal health business into Covetrus and restructuring efforts, which together are strategically positioning Henry Schein for continued success. We thank our team Schein Members across the globe for their significant contributions to these important efforts. As we begin 2019, we are most excited about the future of Henry Schein. We believe the long-term business opportunities remain attractive in the global markets for Dental and Medical offices as well as alternate sites of care. We offer the broadest range of solutions in the markets we serve, including medical and dental supply chain and specialty solutions, as well as dental technology through Henry Schein One. Looking ahead, we are confident that we are well-positioned to deliver continued revenue and profitability growth for Henry Schein’s dental and medical businesses with long-term organic sales growth goals of one to two percentage points above underlying market growth rates, supplemented by strategic acquisitions,” CEO Stanley Bergman said in an SEC filing.
The company released guidance for its 2019 fiscal year, expecting to see non-GAAP diluted EPS of between $3.38 and $3.46. Henry Schein said it expects to post growth of between 7% and 9% for the year.
Shares in Henry Schein have fallen approximately 5.3% so far today, at $59.74 as of 2:01 p.m. EST.
Earlier this month, Henry Schein closed the spinout of its animal health business, now known as Covetrus.
