HomeMost PopularInvestingHenry Schein (HSIC) Q3 Revenues Miss, 2023 Guidance Cut

Henry Schein (HSIC) Q3 Revenues Miss, 2023 Guidance Cut

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In the third quarter of 2023, Henry Schein, Inc. (HSIC) reported adjusted earnings per share (EPS) of $1.32, marking a 2.3% increase from the previous year. However, this figure fell short of the Zacks Consensus Estimate by 0.8%. The company’s net sales for the same period amounted to $3.16 billion, representing a 3.1% year-over-year growth but missing the Zacks Consensus Estimate by 0.9%.

Revenues in Detail

The year-over-year increase in revenues comprised a 1.2% decrease in local currencies, a 3.2% boost from acquisitions, and a 1.1% rise in net sales related to foreign currency exchange. Notably, sales of personal protective equipment (PPE) and COVID-19 test kits in the third quarter amounted to $175 million, showing a decline from the prior-year period.

Diving into Geographic Sales

The company’s sales in North America totaled $2.36 billion, marking a 0.5% decline from the previous year. On the other hand, sales in the international market reached $799 million, reflecting a robust 15.3% year-over-year growth.

Segmental Performance

Henry Schein operates through three key segments: Dental, Medical, and Technology and Value-Added Services.


The company’s global Dental sales for the third quarter amounted to $1.88 billion, up 5.4% from the previous year. This figure included a slight decrease in internally generated sales in local currencies and reflected mixed performances in North America and internationally.


Global Medical revenues declined by 3.3% year over year, totaling $1.07 billion. This segment’s performance was impacted by a challenging prior-year comparison and a product mix shift to generic pharmaceuticals and corporate brand products.

Technology and Value-Added Services

Revenues from global Technology and Value-Added Services soared by 19.3% to $210 million, showcasing strong growth driven by internal sales and acquisitions, including Large Practice Sales LLC.

Margin Trend

In the reported quarter, Henry Schein’s gross profit amounted to $995 million, reflecting an 8.9% year-over-year increase. The gross margin expanded to 31.5%. However, the company experienced a rise in selling, general, and administrative (SG&A) expenses, leading to a contraction in the adjusted operating margin.

Liquidity Position

During the third quarter of 2023, HSIC repurchased nearly 660,000 shares of its common stock for $50 million and maintained approximately $315 million in authorized funds for future stock repurchases.

2023 Guidance

Henry Schein provided a revised outlook for 2023, expecting adjusted EPS in the range of $4.43-$4.71. The company also adjusted its sales growth projection to 1%-3% lower compared to 2022 figures. These revisions reflect the company’s assessment of ongoing operations, recent acquisitions, and prevailing market conditions.


Despite missing estimates, Henry Schein saw year-over-year growth in both earnings and revenues, driven by robust performances in its dental and technology segments. However, the company’s downward revision of its 2023 guidance reflects a cautious outlook, considering macroeconomic conditions and a recent cybersecurity incident affecting its operations.

It’s important to note that Henry Schein currently holds a Zacks Rank #3 (Hold) and faces challenges from evolving market dynamics and external disruptions.

If you are interested in medical stocks, some noteworthy names to explore include DexCom (DXCM), Medpace (MEDP), and The Ensign Group (ENSG). Each of these companies has showcased solid performances in their recent quarterly results.

Disclaimer: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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