Henry Schein reports higher quarterly profit, sales
Stanley M. Bergman, chairman and chief executive of Henry Schein Inc. in Melville. Credit: Newsday / J. Conrad Williams Jr.
Henry Schein Inc., Long Island's largest publicly traded company by revenue, on Monday reported gains in quarterly sales and net income.
The Melville-based maker of supplies for dentists, doctors and veterinarians posted net sales of $3.3 billion for the three-month period ending June 30, a year-over-year increase of 8.7 percent. Net income attributable to the company was $141.2 million, up 3.8 percent from a year earlier.
Earnings per diluted share for the quarter were 92 cents, a gain of 6 cents from the same period in 2017.
The company’s stock price rose 2.4 percent Monday to close at $82.17. A year ago, it closed at $91.90.
In a news release, the company said its second quarter included before-tax expenses such as $14.9 million in restructuring costs and $7.6 million in costs from the planned spinoff of its animal health business. In the second quarter of 2017, its pretax expenses included a litigation settlement expense of $5.3 million
Stanley M. Bergman, chairman and chief executive, said in a statement that the latest quarter’s results "reflect solid revenue growth in generally healthy end-markets, as well as our continued success in gaining market share in all of our business groups."
The company said Monday it repurchased about 744,000 shares of its common stock during the most recent quarter at an average price of $71.69 per share, or about $53 million. The impact of the stock buyback on second-quarter 2018 earnings per diluted share was immaterial, the company said. At the end of the second quarter, Henry Schein had approximately $147 million authorized for future stock buybacks.
The west building at the worldwide corporate headquarters of Henry Schein Inc. in Melville is pictured March 28. Credit: Barry Sloan
The company’s dental consumables business had organic growth of about 4.7 percent, the highest quarterly growth rate since the last fiscal quarter of 2015. The company also saw growth in its CAD/CAM and implants businesses, analyst Ross J. Muken wrote in a research note after the earnings release. However, its digital imaging sales were soft, and it is experiencing “pricing pressures as online retailers continue to grow and offer more openness on pricing,” Muken wrote.
Henry Schein, Muken wrote, “is a wonderful company and it is remarkably well run” but its stock price is approaching “near peak value in our mind.”
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Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
