Henry Schein (Nasdaq:HSIC) shares took a hit today despite fourth-quarter revenues that topped the consensus forecast.
Shares of HSIC dipped 5.8% to $83.51 apiece in midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 11.1%.
The Melville, New York-based dental device maker posted profits of $47 million. That amounts to 34¢ per share on sales of $3.71 billion for the three months ended Dec. 31, 2022.
Henry Schein reported a 68% bottom-line slide on sales growth of 1.2%. Global dental sales totaled $2 billion, marking a 0.7% decline from 2021. However, Henry Schein’s medical sales grew by 4.1% to $1.2 billion.
Adjusted to exclude one-time items, earnings per share came in at $1.21, equaling expectations on Wall Street. Henry Schein posted a slight sales beat as analysts projected revenues of $3.34 billion.
Stanley M. Bergman, chair and CEO, said Henry Schein managed “a very good” quarter despite “macroeconomic and foreign exchange headwinds.”
“We overcame significant headwinds from lower sales of PPE products and COVID-19 test kits,” said Bergman. “Looking ahead, we are introducing financial guidance for 2023 where we expect operating income growth in the high single-digit to low double-digit percentage range when excluding the contribution from PPE products and COVID-19 test kits. The impact of lower selling prices of PPE products and reduced demand for COVID-19 test kits will be largely offset by earnings momentum in our underlying core businesses, and the good momentum we have as we enter 2023 gives us confidence in this full-year 2023 guidance.”
Henry Schein expects adjusted EPS in 2023 to land between $5.25 and $5.42. It projects year-over-year sales growth between 1% and 3%.