MELVILLE (dpa-AFX) - (Adds Outlook, restructuring)
Henry Schein, Inc. (HSIC) announced a restructuring plan to integrate recent acquisitions, and right-size operations, aiming for $75 million to $100 million in annual run-rate savings.
Consequently, the company expects to record restructuring charges in the second half of 2024 and 2025. Restructuring charges are expected primarily to include severance pay and facility-related costs.
Looking ahead, Henry Schein has slashed its annual earnings guidance below analysts' forecast.
Stanley Bergman, CEO of Henry Schein, said: 'Given the challenging economic environment in certain markets, as well as this delay in recovery from the cyber-incident, we are updating our 2024 full-year financial guidance.'
The company now projects annual adjusted income per share of $4.70 to $4.82, compared with prior guidance of $5 to $5.16 per share.
Analysts, on average, forecast the firm to earn $5.06 per share, for the year.
Sales growth is now expected to be around 4 percent to 6 percent, compared with its prior guidance of 8 percent to 10 percent growth.
Q2 Results:
Henry Schein revealed a profit for second quarter that decreased from last year but beat the Street estimates.
The company's earnings came in at $104 million, or $0.80 per share. This compares with $140 million, or $1.06 per share, in last year's second quarter.
Excluding items, Henry Schein Inc. reported adjusted earnings of $158 million or $1.23 per share for the period.
Analysts on average had expected the company to earn $1.22 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 1.2% to $3.136 billion from $3.100 billion last year.
Henry Schein Inc. earnings at a glance (GAAP) :
-Earnings (Q2): $104 Mln. vs. $140 Mln. last year. -EPS (Q2): $0.80 vs. $1.06 last year. -Revenue (Q2): $3.136 Bln vs. $3.100 Bln last year.
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