Henry Schein Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Henry Schein (NAS: HSIC) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Henry Schein beat expectations on revenues and earnings per share.

Compared with the prior-year quarter, revenue improved and GAAP earnings per share expanded.


Gross margins expanded, operating margins improved, net margins dropped.

Revenue details
Henry Schein reported revenue of $2.10 billion. The 12 analysts polled by S&P Capital IQ expected to see sales of $2.03 billion on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $1.95 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.98. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.92 per share. GAAP EPS of $0.89 for Q1 were 8.5% higher than the prior-year quarter's $0.82 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.1%, 10 basis points better than the prior-year quarter. Operating margin was 6.9%, 50 basis points better than the prior-year quarter. Net margin was 3.8%, 10 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $1.10.

Next year's average estimate for revenue is $8.80 billion. The average EPS estimate is $4.32.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 94 members out of 103 rating the stock outperform, and nine members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Henry Schein a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Henry Schein is hold, with an average price target of $75.54.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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