On May 7, 2024, Henry Schein Inc (HSIC, Financial) released its 8-K filing, announcing its financial results for the first quarter ended March 30, 2024. The company, a leading provider of healthcare solutions, reported a sales growth of 3.7% with a GAAP diluted EPS of $0.72 and a non-GAAP diluted EPS of $1.10. These figures align closely with analyst expectations, which estimated an EPS of $1.01. The reported revenue of $3.2 billion also aligns with the anticipated $3.21 billion, indicating a steady performance amidst operational challenges.
Henry Schein, headquartered in Melville, N.Y., operates primarily through its two segments: healthcare distribution and technology & value-added services. The company's extensive network supports over 1 million customers globally, providing a range of solutions that enhance operational success and clinical outcomes in the healthcare sector.
The first quarter saw Henry Schein navigating through the residual impacts of a cyber incident from the previous year, which notably affected its internal sales by a decrease of 1.8%. Despite these hurdles, the company managed a robust recovery, marked by a gross margin expansion and contributions from recent acquisitions, which are integral to its strategic BOLD+1 Plan.
Financially, Henry Schein's GAAP net income for the quarter stood at $93 million, a decline from the previous year's $121 million. The non-GAAP net income also saw a decrease to $143 million from $161 million in the first quarter of 2023. The Adjusted EBITDA remained stable at $255 million. During this period, the company repurchased approximately 1 million shares of its common stock, amounting to roughly $75 million, with an immaterial impact on the diluted EPS.
Looking ahead, Henry Schein has tightened its total sales growth guidance for 2024 to 8% to 10%, reflecting ongoing recovery efforts and a strong pipeline of new specialty products and software innovations. The company reaffirms its 2024 non-GAAP diluted EPS guidance of $5.00 to $5.16, projecting an Adjusted EBITDA growth of over 15%.
The company's balance sheet remains robust with total assets of $10.145 billion as of March 30, 2024. The cash flows from operating activities were notably positive, providing the company with a solid foundation to manage its strategic initiatives effectively.
Henry Schein's performance this quarter reflects its resilience and adaptability in a challenging market environment. With a strategic focus on innovation and efficiency, the company is well-positioned to maintain its growth trajectory and strengthen its market leadership in the healthcare solutions industry.
Explore the complete 8-K earnings release (here) from Henry Schein Inc for further details.
