Henry Schein (HSIC) Up 5.3% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Henry Schein, Inc. HSIC. Shares have added about 5.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
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Henry Schein Tops Q1 Earnings, Reaffirms '17 View
Henry Schein reported adjusted earnings per share (EPS) of $1.76 in the first quarter of 2017, up 24.8% year over year. Adjusted EPS also surpassed the Zacks Consensus Estimate of $1.66. The year-over-year upside in earnings was driven by strong revenue growth.
Henry Schein’s reported net income in the first quarter came in at $140.7 million or $1.76 per share, reflecting year-over-year growth of 23.7% and 28.5%, respectively.
Revenues in Detail
Henry Schein reported revenues of $2.92 billion in the first quarter, up 7.7% year over year and also above the Zacks Consensus Estimate of $2.83 billion. The year-over-year improvement came on the back of 8.7% growth in local currencies and a 1.0% decline owing to foreign currency exchange. At local currencies, internally generated sales increased 5.9% and acquisition growth was 2.8%.
The company recorded year-over-year sales growth of 5.6% or $1.94 billion in the North American market and 12.3% or $980.7 million in the international market.
Segment Analysis
Henry Schein derives revenues from four operating segments: Dental, Medical, Animal Health, Technology and Value-added services.
In the first quarter, the company derived $1.40 billion in revenues from global Dental sales, up 7.9% year over year. This includes 8.2% growth in local currencies and 0.3% decline related to foreign currency exchange. At local currencies, internally generated sales increased 2.9% and acquisition growth was 5.3%. Internal growth at local currencies included 0.8% growth in North America and 6.8% rise internationally.
The company's global Animal Health segment witnessed 5.4% improvement in revenues to $812.9 million. This includes 8.1% growth in local currencies and 2.7% decline related to foreign currency exchange. At local currencies, internally generated sales increased 7.1% and acquisition growth was 1.0%. The 7.1% internal growth in local currencies included 5.5% growth in North America and 8.9% growth internationally.
Worldwide Medical sales scaled 11.3% year over year to $598.9 million. Internal sales growth in local currencies was 11.5%, with a 0.2% decrease owing to adverse foreign exchange.