Henry Schein Boosts Share Buyback Plan by $300 Million

Andrew Klips |

Henry Schein Boosts Share Buyback Plan by $300 MillionHenry Schein Inc. (HSIC) said Tuesday morning that its board of directors has approved increasing its $200 - $300 million-share buyback program announced in April by an additional $300 million.  Approximately $243 million worth of shares of the original plan (3.2 million shares) have been bought-back already as part of the initial plan as the company executes its plan to try and build greater shareholder value.

At current prices around $77 per share, the additional plan represents about 4 percent of the 88.3 million shares outstanding as of September 29 of the world’s largest provider of health care products and services to office-based dental, medical and animal practitioners.



Shares will be purchased through negotiated transactions or through open market purchases, according to today’s corporate statement.

"Earlier this year we stated our intention to repurchase $200 million to $300 million annually in Henry Schein shares reflective of the strength in our balance sheet and our confidence in the long-term prospects of our business," said Stanley M. Bergman, Chairman and Chief Executive Officer of Henry Schein.

On November 7, the Melville, New York-based company said that net sales for the third quarter increased 5.7 percent to $2.2 billion, despite a 3.2 percent decline related to an unfavorable foreign currency exchange.  Net income rose 5.2 percent from the year prior quarter to $96.8 million, or $1.08 per diluted share.  Analysts were expecting earnings of $1.07 per share and revenue of $2.24 billion.

Shares of HSIC closed Monday at $77.07, up about 20 percent for 2012.  Interesting, traders have kept shares rangebound for about six months between a support level around $73 per share and 52-week highs at about $80, providing 10 percent swings for investors focused on those parameters.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
HSIC Henry Schein Inc. 69.12 -0.39 -0.55 1,402,517 Trade

Comments

Emerging Growth

Naked Brand Group Inc

Naked Brand Group Inc through its wholly-owned subsidiary is engaged in manufacturing and selling of direct and wholesale men's undergarments to consumers and retailers.

Private Markets

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.