Henry Schein Shares Fall Despite Positive Earnings Report
Company's stock declined despite meeting analysts' estimates
Melbourne, Australia – 28 July 2023:
Shares of Henry Schein Inc., the largest distributor of healthcare products in the world, fell on Friday despite the company reporting strong second-quarter earnings.
The company's stock price dropped by 2.5% by the end of the trading day, underperforming the S&P 500 index, which was up 0.5% on Friday.
Henry Schein reported earnings per share of \$1.45 in the second quarter, meeting analysts' estimates. Revenue also came in line with expectations, increasing by 4.5% year-over-year to \$3.4 billion.
Despite the positive earnings report, investors were concerned about the company's guidance for the rest of the year. Henry Schein said it expects earnings per share for the full year to be in the range of \$5.70 to \$5.90, below analysts' consensus estimate of \$5.95.
The company also said it expects revenue growth to slow in the second half of the year. Henry Schein attributed this to the impact of the strong US dollar, which makes its products more expensive in overseas markets.
Analysts said the company's guidance was disappointing, but they were still optimistic about the company's long-term prospects.
"Henry Schein is a well-run company with a strong market position," said David Larsen, an analyst at Baird Equity Research. "The company's guidance for the rest of the year is a bit disappointing, but we believe the company is still well-positioned for growth in the long term."
Henry Schein's stock has underperformed the S&P 500 index over the past year, declining by 10% compared to the index's 8% gain.
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