Henry Schein Updates 2023 Guidance; Sales To Decline Primarily Due To Cybersecurity Incident

(RTTNews) - Henry Schein, Inc. (HSIC) updated guidance for full-year 2023, and now expects non-GAAP EPS of $4.43 to $4.71. This reflects: a narrowing of the previous guidance range for the underlying business to $5.18 to $5.26 from prior guidance of $5.18 to $5.35, reflecting softening macroeconomic conditions, and an estimated $0.55 to $0.75 per share business interruption impact of the recent cybersecurity incident.

The company now projects 2023 sales to be approximately 1% to 3% lower than 2022 sales, which is an update from prior guidance of 1% to 3% sales growth. The company noted that the change in guidance is primarily due to the recent cybersecurity incident.

Third quarter GAAP net income was $137 million, or $1.05 per share, compared with $150 million, or $1.09 per share, prior year. Non-GAAP net income was $173 million, or $1.32 per share, compared with $177 million, or $1.29 per share. On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $1.32, for the quarter. Analysts' estimates typically exclude special items.

Total net sales for the third quarter were $3.2 billion, an increase of 3.1% compared with the third quarter of 2022. Analysts on average had estimated $3.22 billion in revenue. Global Medical sales were $1.1 billion, a decrease of 3.1%.

Henry Schein discovered a cybersecurity incident on October 14, 2023 that primarily affected dental and medical distribution businesses. The company expects to file an insurance claim in 2024 related to this incident. The company noted that any recovery from the claim will likely not be recognized until late 2024.

Shares of Henry Schein are down 3% in pre-market trade on Monday.

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