Henry Schein Inc., Long Island's largest public company, Thursday posted fourth quarter gains in sales and profit driven by its medical and technology businesses.
Net sales from continuing operations for the quarter ended Dec. 28 grew 7.9% to $2.7 billion despite lackluster performance in dental consumables, the Melville company announced.
Net income climbed to $143 million, or 97 cents per share, excluding the sale of equity investments and a reduction in estimated restructuring costs. That compared to net income of $136.2 million, or 89 cents per share, in the year-earlier period.
Despite beating the consensus revenue and net income consensus estimates of analysts polled by Bloomberg, shares of Henry Schein tumbled 6.5% to close at $68.92.
In a research note, Jeff D. Johnson, an analyst for Robert W. Baird & Co. Inc., characterized the quarter as "mixed," with strong revenue and earnings "largely driven by short-term factors."
In a statement, Stanley M. Bergman, Henry Schein's chairman and chief executive, pointed to the company's “strong revenue growth in our medical and technology and value-added services businesses" during the quarter.
He acknowledged that North America dental consumable sales were essentially flat, "reflecting soft end-market demand from independent dental practices."
The multinational company's dental unit, its largest business, increased sales 2.9% to $1.7 billion, while medical sales rose 15.2% to $788.7 million. Technology and value-added services grew sales from continuing operations 20% to $137.1 million.
For all of 2019, net sales from continuing operations were $10 billion, a 6% increase compared to 2018.
In February 2019, Henry Schein completed the spinoff of its animal health business to become part of Covetrus, a new, publicly traded company based in Portland, Maine.
The distributor of supplies to the offices of dentists and physicians has operations or affiliates in 32 countries. In its earnings report, Henry Schein said it expects "no significant supply chain disruption" related to the coronavirus.
Henry Schein, a Fortune 500 company, is ranked as Long Island's largest public company based on annual revenue.