Henry Schein Inc., Long Island's largest public company by revenue, Tuesday raised its guidance after handily beating year-earlier sales and earnings results for the second quarter.
Sales for the quarter ended June 26 climbed 76.2% to $3 billion versus the year-earlier period when the COVID-19 pandemic slowed activity in the offices of dentists and physicians.
Revenue was up 21.2% when compared with the comparable quarter in 2019, before the pandemic struck, the Melville company reported.
Shares of Henry Schein recouped some early losses Tuesday to close down 1.1% to $80.37.
The distributor of branded and private-label products to offices of dentists and physicians in 32 countries raised the bottom range of its pro forma 2021 earnings per share guidance to $3.85 from $3.70.
Quarterly net income from continuing operations was $155.7 million, or $1.10 per diluted share, versus $11.4 million, or 8 cents per dilutes share in the 2020 period.
In a research note, Evercore ISI analyst Elizabeth Anderson said that while Henry Schein's overall and dental revenue beat forecasts, its medical unit underperformed.
She said the increase in the earnings per share guidance was roughly the same as the amount by which the company beat estimates in the second quarter. Anderson said the revision "will likely be viewed as conservatism in a volatile operating environment."
"Strengthening demand in the global dental and medical markets drove strong year-over-year increases in sales versus the prior year when many of our customers had temporarily closed their offices," Stanley M. Bergman, Henry Schein chairman and chief executive, said in a statement.
Dental sales, Henry Schein's largest business, increased for the quarter by 102.9% to $1.9 billion.
"Consumable merchandise sales in North America and in our international markets experienced double-digit growth versus the same period in 2019," said Bergman, but North America dental equipment sales growth "was modest," reflecting manufacturing delays.
Medical sales climbed 46.5% to $904.8 million versus the year-earlier quarter, while technology and value-added services rose 44.5% to $152.1 million.