Henry Schein beats quarterly profit estimates on lower costs

Henry Schein

05/11/2024 12:56

Nov 5 (Reuters) - Dental products distributor Henry
Schein  HSIC.O  beat third-quarter profit estimates on Tuesday,
as a series of cost-saving measures helped counter tepid demand
and slow recovery from a cyberattack it disclosed in October
last year.
    The company, which supplies products such as dental implants
and personal protective equipment (PPE), had faced disruptions
in manufacturing and distribution units after the cybersecurity
breach, which caused it to take some of its systems offline.
    The results "showed strong cost discipline in the face of a
tough operating environment," Leerink Partners analyst Michael
Cherny said in a note.
        The company raised the lower end of its adjusted annual
profit per share forecast to $4.74 from a prior view of $4.70,
while maintaining the upper end at $4.82.
    Analysts on average expect its annual profit to be $4.75 per
share, according to data compiled by LSEG.
        Henry Schein said it is on track to meet its goal of
saving $75 million to $100 million by the end of next year as
part of a restructuring plan announced in August.
  
    The company recorded $48 million in restructuring costs in
the quarter ended Sept. 28.
    Its third-quarter adjusted earnings came in at $1.22 per
share, beating estimates of $1.17.
    However, its quarterly revenue of $3.17 billion missed
estimates of $3.24 billion, hurt by lower sales of PPE and slow
recovery from the cyberattack.
    Sales at its dental unit, which supplies implants and
tooth-whitening products, among other items, came in at $1.85
billion, below expectations of $1.89 billion. 
    Henry Schein's selling, general and administrative expenses
came in at $724 million, compared with expectations of $796.61
million. 

 (Reporting by Mariam Sunny in Bengaluru; Editing by Shreya
Biswas)
 ((Mariam.ESunny@thomsonreuters.com;))