Henry Schein Inc., Long Island's largest public company by revenue and stock market value, posted a double-digit percentage increase in first-quarter net sales on Tuesday, but slightly lower net income amid costs related to restructuring and the proposed spinoff and merger of its animal health business.
Shares of Henry Schein tumbled 6.8 percent to close Tuesday at $71.08. Twelve months ago the stock closed at $88.71.
Net sales at the Melville-based company during the period ended March 31 were $3.2 billion, a 10.2 increase over the 2017 quarter.
Net income was $140.2 million, a 0.4 percent decline from the previous year's quarter and reflecting pretax restructuring costs of $3.8 million and an additional $3.8 million related to the pending spinoff and merger of the animal health business.
Diluted earnings per share, which vary according to the number of shares outstanding, came in at 91 cents, a 3.4 percent increase from the prior year's quarter.
Henry Schein has made several strategic moves in recent weeks.
In April, the company announced it was folding its dental software business into a majority-owned joint venture with El Segundo, California-based Internet Brands called Henry Schein One.
Also in April, Henry Schein announced a plan to spin off its animal health business and merge it with Portland, Maine-based Vets First Choice to create a new publicly traded company.
"We expect these actions will build shareholder value for years to come," Stanley M. Bergman, Henry Schein chairman and chief executive, said in a conference call Tuesday.
Henry Schein distributes products to clinics, free-standing emergency rooms and the office-based practices of dentists, physicians and veterinarians.
Dental sales for the quarter were $1.5 billion, a 10.2 percent year-over-year increase. Animal health sales increased 13.1 percent to $919.8 million. Medical sales climbed 6.9 percent to $640.4 million.
A research note Tuesday by Ross J. Muken, an analyst at Manhattan investment bank Evercore ISI, said that Henry Schein faces "uncertainty" related to a Federal Trade Commission anti-trust investigation and competition from Amazon.com Inc.