Henry Schein Reports Revenue Up 9 Percent and Profits Up 8 Percent in Q1

Andrew Klips  |

Health care product and service provider Henry Schein Inc. (HSIC) said Tuesday that first-quarter earnings and revenue improved on the back of increased sales both in North America and internationally. The Melville, New York-based company also affirmed its outlook for the full year.

Revenue in the first quarter for Henry Schein totaled $2.3 billion, a 9.3 percent increase from $2.1 billion in the year prior quarter. Net income in the latest quarter was $91.5 million, or $1.03 per share, up from $80.8 million, or 89 cents per share, last year. Excluding special items related a refinancing of debt at Butler Schein Animal Health, adjusted profits were $94.2 million, or $1.06 per share, an 8.2 percent increase compared to adjusted earnings in the first quarter of 2012.

Wall Street was expecting profits of $1.07 per share on revenue of $2.25 billion.

Global dental sales grew 3.0 percent to $1.2 billion. Animal health sales worldwide surged 21.6 percent to $639.1 million, with North American sales rising 14.9 percent and international sales rising 28.5 percent. Global medical sales rose by 9.6 percent to $388.9 million. Only international sales in Henry Schein’s medical segment, one of its smallest businesses, posted a decline for the quarter, dropping from $21.8 million to $21.2 million.

Global technology and value-added services increased 18.7 percent to $74.7 million, bolstered by 11.4 percent growth in North America and 14.3 percent growth overseas.

Gross margin for the quarter slipped from 29.1 percent last year to 28.2 percent.

Saying he was pleased with the quarter, Stanley M. Bergman, chairman and chief executive of Henry Schein, commented, "While the quarter's results reflect certain macroeconomic challenges in Europe, as well as some one-time technical factors, our bottom-line performance was in line with our expectations, reinforcing our confidence in the long-term outlook for the Company."

During the first quarter, the company repurchased about 840,000 shares of its stock for an aggregate of $73.5 million. As of March 31, the company still has about $227 million authorized for additional share repurchases.

For the full year 2013, Henry Schein sees earnings per share in the range of $4.81 to $4.91, representing growth of 8 percent to 11 percent over 2012.

On Monday, the company said that it now ranks #296 on the Fortune 500 list, marking the first time that it has broken under #300 since it first debuted on the list at #487 in 2004.

Shares of HSIC are up more than 20 percent in the past 52 weeks at Monday’s closing price of $91.13. In 2013 alone, shares have climbed more than 13 percent.

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