Henry Schein stock surges 6.6% on earnings report
Henry Schein reported increased earnings and revenue from continuing operations, after spinning off its animal health business. Credit: Barry Sloan
Henry Schein Inc., Long Island's largest public company by revenue, Tuesday posted a 3.8 percent year-over-year increase in revenue from continuing operations in the first quarter to $2.4 billion.
The Melville company reported its earnings before the stock market opened on Tuesday. It was the company's first report since spinning off its animal health business in February.
Net income attributable to Henry Schein from continuing operations was $118.4 million, or 78 cents per diluted share, versus $111.5 million, or 72 cents per diluted share, in the previous year's period.
Shares of Henry Schein surged 5.4 percent to close Tuesday at $66.71. Twelve months ago, the stock was trading at $59.82.
Henry Schein distributes supplies and equipment to clinics and the offices of dentists and doctors around the world.
"We have completed the first quarter of what we have characterized as a transition year as we continue to separate operations of our former animal health business," said Stanley M. Bergman, Henry Schein's chairman and chief executive. "We believe we gained market share in both of our global dental and medical businesses."
Dental sales decreased 0.1 percent to $1.5 billion, while medical sales increased 6.8 percent to $683.7 million.
Sales of technology and value-added services from continuing operations increased 35.1 percent to $115.5 million. Bergman said that growth stemmed from the formation of Henry Schein One, a dental technology joint venture with Internet Brands.
Ross Muken, an analyst for Evercore ISI, said in a research note that the quarter was a "solid start to the year."
He said that fears of weak sales of dental consumables were "largely unfounded," while medical results were as expected and technology revenue came in above estimates.
In 2017, Henry Schein posted annual revenue of $12.5 billion, the most of any Long Island public company.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
