logo
  

Henry Schein Lowers 2022 Sales Growth Outlook; Announces Restructuring Plan

While reporting second-quarter results on Tuesday, Henry Schein, Inc. (HSIC) affirmed full-year 2022 GAAP EPS guidance range of $4.75 to $4.91, reflecting growth of 7% to 10% over full-year 2021 GAAP EPS and growth of 5% to 9% over full-year 2021 non-GAAP EPS. The company updated full-year 2022 expected sales growth to be approximately 3% to 6% over 2021. This is compared with previous guidance for growth of 5% to 8% over 2021 and reflects adverse effects from foreign exchange rates and a decrease in anticipated sales of PPE and COVID-related products, including COVID-19 test kits. Sales of COVID-19 test kits are now expected to decline 25% to 30% from 2021, versus a previously estimated decline of 15% to 25%.

Henry Schein also announced a company-wide restructuring plan that is focused on funding the priorities of the strategic plan and streamlining operations and other initiatives to increase efficiency. The company expects to record restructuring charges in 2022 and 2023. The expense savings realized from the plan are expected to mainly affect 2023 and beyond.

Second-quarter bottom line came in at $160 million, or $1.16 per share compared with $156 million, or $1.10 per share, prior year. Excluding items, Henry Schein reported adjusted earnings of $160 million or $1.16 per share for the period. Analysts on average had expected the company to earn $1.16 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Second-quarter net sales were $3.0 billion, up 2.1% from last year. Internal sales were up 6.7% in local currencies when excluding sales of PPE and other COVID-19 related products.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Google, owned by Alphabet Inc., plans to merge its teams working on Maps products and the mapping service Waze with effect from December 9, reports said. The decision to consolidate processes comes as the search giant is facing pressure to streamline operations and cut costs. The restructuring is expected to reduce overlapping work across the Waze and Maps products. The Pentagon announced that up to $9 billion worth of cloud-computing contracts were awarded to Google, Oracle, Amazon, and Microsoft. In a statement, the U.S. Department of Defense said, "The purpose of this contract is to provide the Department of Defense with enterprise-wide, globally available cloud services across all security domains and classification levels..." Juul Labs, an e-cigarette maker, said it has reached settlements with more than 5,000 vaping lawsuits in the United States. The cases were related to personal injury, consumer class action, government entity, and Native American tribes. In a statement, the company said it cannot disclose the settlement amount at this time as part of the settlement and court process.
RELATED NEWS
Follow RTT