Henry Schein Inc (NASDAQ:HSIC)., a leading global healthcare products and services distributor, saw its shares fall 3.07% in premarket trading today after reporting third-quarter sales that fell short of analyst expectations. The company announced a Q3 revenue of $3.162 billion, a slight increase from $3.067 billion in the same period last year but below the FactSet consensus of $3.212 billion.
The company's net income for the quarter was reported at $173 million, translating to an adjusted earnings per share (EPS) of $1.32, which aligned with the FactSet consensus. However, amid growing concerns about an economic slowdown, Henry Schein has revised its full-year guidance downward. The company now forecasts an adjusted EPS in the range of $4.43 to $4.71, which is notably lower than the FactSet consensus estimate of $5.20 and less than the previously stated range of $5.18 to $5.35.
A recent cybersecurity incident at Henry Schein is expected to have a significant financial impact. The company estimates a business interruption cost resulting from the incident to be between 55 cents and 75 cents per share, not accounting for any potential insurance recoveries.
In addition to the cybersecurity-related costs, Henry Schein has also adjusted its sales growth expectations for the year. Contrary to earlier projections of sales growth between 1% and 3%, the company now anticipates a decline in sales within the same range.
Today's announcement reflects both the challenges Henry Schein faces in the current economic climate and specific setbacks such as the cybersecurity incident. The lowered full-year guidance and anticipated sales decline underscore the cautious outlook for the company's performance in the near term.
InvestingPro Insights
InvestingPro's real-time data and tips provide additional insights into Henry Schein Inc.'s current financial situation. The company's market cap is currently 8370.0M USD, with a P/E ratio of 18.53. Over the last twelve months as of Q2 2023, the company has shown a revenue growth of -0.94%, indicating a slight decline in earnings.
Two key InvestingPro Tips to note include that Henry Schein's management has been aggressively buying back shares and that the company is a prominent player in the Healthcare Providers & Services industry. This could be seen as a vote of confidence in the company's future prospects. However, it's worth noting that 4 analysts have revised their earnings downwards for the upcoming period, which aligns with the company's recent adjustment of its full-year guidance.
InvestingPro offers 8 more tips related to Henry Schein Inc., which can be accessed through their platform, providing investors with a comprehensive understanding of the company's financial health and future prospects.
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