Health care products distributor Henry Schein Inc., Long Island’s largest public company by revenue, Thursday posted second quarter net income of $120.1 million, a year-over-year gain of 1.8 percent.
The company’s results in the quarter benefited from lower tax expense and strength in its medical and animal health units. The results were tempered by restructuring costs and weaker-than-expected dental sales in North America.
The Melville supplier of dental, medical and animal health products to practitioners’ offices narrowed its guidance for annual earnings per share, excluding restructuring costs, to a range of $6.55 to $6.60. Earlier guidance called for a range of $6.55 to $6.65.
Its shares dropped 9 percent to $163.53 on Thursday.
“North America dental sales were below our expectations in the second quarter, however, sales in our medical, animal health and technology and value-added services businesses were strong,” chairman and chief executive Stanley Bergman said in a statement.
Henry Schein, had revenue of $10.6 billion in 2015, and ranked No. 268 on the Fortune 500. Its shares are up 10.5 percent in the past 12 months.
Executives at the company have said that digital technologies, aging baby boomers and a bigger focus in health care on prevention and wellness have boosted the company’s growth. Henry Schein also has expanded overseas, in part through acquisitions.
Earnings per diluted share for the quarter ended June 25 were $1.46, a gain of 4.3 percent compared to the 2015 period.
The company’s net sales for the quarter were $2.9 billion, an increase of 9.3 percent.
The results reflect a tax audit settlement resulting in a $4.5 million reduction in income tax expenses as well as $20.4 million in restructuring costs before taxes.